Donate Land to Charity: Tax Deduction Rules and Costs

Many landowners hold a lot they no longer want. Some think about giving it away to a good cause. You can donate land to charity, and the gift can lead to a federal tax deduction. But land is not like a cash gift. The charity has to agree to take it, the IRS has paperwork rules, and the gift itself can cost you money.

This guide explains who accepts land, how the tax deduction works, which IRS forms you need, what the gift may cost, and when it makes more sense to sell the land and donate cash instead. This is general information, not legal or tax advice. Talk to a tax professional before you give away land.

Can You Donate Land to Charity?

Yes. A qualified charity can accept land as a gift. You sign a deed that transfers the land to the charity, and the deed is recorded with the county. After that, the charity owns the land. It can keep it, use it, or sell it.

Before you start, check two things:

• Is the group a qualified organization? Only gifts to qualified organizations can be deducted. The IRS has a free Tax Exempt Organization Search where you can look up a charity by name.
• Does the group want land? Many charities have a policy on gifts of real estate. Some say no to all land. Others take only land they can use or sell easily.

Who Accepts Land Donations?

The groups most likely to say yes are:

• Land trusts and conservation groups. They often want land with woods, wetlands, wildlife habitat or farmland they can protect.
• Housing groups. Some want buildable lots in towns where they build homes.
• Universities, hospitals and large national charities. Many have planned giving offices that take real estate, then sell it and use the money.
• Churches and local nonprofits. A local group may want land near its building or in its community.
• Donor-advised fund sponsors and community foundations. Some accept real estate, sell it, and put the money into a fund you can grant from.

Most groups will look hard at the land before they agree. They may ask about:

• The deed and whether the title is clear
• Unpaid property taxes, liens or a mortgage
• Road access and whether the lot can be built on
• Flood zones, wetlands or signs of dumping or pollution
• How easy it will be to sell, and what it will cost to hold until then

Land that is remote, has no road access, or carries back taxes is often turned down. A charity does not want a gift that costs it money every year.

How the Tax Deduction for Donating Land Works

The rules below come from IRS Publication 526, Charitable Contributions. They are federal rules. Your state may have its own rules for state income tax.

You Must Itemize

You only get a deduction for a land gift if you itemize deductions on your federal return. Starting in tax year 2026, people who do not itemize can deduct up to $1,000 of cash gifts ($2,000 for married couples filing jointly). That new deduction is for cash only. A gift of land does not count, according to the IRS summary of the new law.

Also new for 2026: if you itemize, you can only deduct the part of your charitable gifts that is more than 0.5% of your adjusted gross income (AGI). This is explained in IRS Publication 505.

How Much You Can Deduct

How long you owned the land matters most.

Land you held more than a year is called capital gain property. For most people, that means the deduction is the land's fair market value. Fair market value is the price a willing buyer would pay a willing seller when both know the facts and neither is forced to act. IRS Publication 561 explains how fair market value is set.

If you are a land dealer, or held the land a short time, the deduction is usually limited to your basis.

Limits Based on Your Income

You cannot always deduct the full value in one year. Under Publication 526:

• A gift of capital gain property, such as land held over a year, to a public charity is generally limited to 30% of your AGI.
• You can choose a 50% of AGI limit instead, but then you must reduce the deduction by the gain. In practice, that brings the deduction down toward your basis.
• Gifts to some other groups, such as many private foundations, have lower limits.
• Any amount you cannot use this year can be carried over for up to 5 years.

For comparison, cash gifts to public charities have a higher limit of 60% of AGI.

IRS Paperwork for a Land Donation

The paperwork is where many land gifts go wrong. Missing a step can cost you the whole deduction.

Written Acknowledgment From the Charity

For any gift of $250 or more, you need a written acknowledgment from the charity. It must describe the land and say whether you received anything in return. You need to have it by the date you file your return, or by the return's due date if that comes first.

Form 8283

You file Form 8283, Noncash Charitable Contributions when your deduction for a noncash gift is more than $500. For land worth more than $5,000, you complete Section B. Section B needs:

• A description of the land
• Signatures from a qualified appraiser
• A signed acknowledgment from the charity

Qualified Appraisal Over $5,000

If you deduct more than $5,000 for the land, you need a qualified appraisal from a qualified appraiser. The IRS rules include these points:

• The appraisal cannot be dated more than 60 days before the gift.
• You must receive it before the due date of the return (including extensions) where you claim the deduction.
• The appraiser must have a recognized appraisal credential, or the right education and at least 2 years of experience valuing that type of property.
• The appraiser's fee cannot be based on a percentage of the appraised value.
• If the deduction is more than $500,000, you must attach the appraisal to your return.

Publication 561 says real estate usually needs a detailed appraisal by a professional appraiser. A tax assessment or an online estimate is not a qualified appraisal.

If the Charity Sells the Land Within 3 Years

Many charities sell donated land. If the charity sells or disposes of land you deducted at more than $5,000 within 3 years, it must file Form 8282 to report the sale to the IRS and to you. The IRS can then compare the sale price to the value you claimed.

What Does It Cost to Donate Land?

Giving land away is not free. Common costs include:

• Qualified appraisal. You usually pay for it. Publication 526 says the appraisal fee cannot be deducted as part of your charitable gift.
• Title work. The charity may want a title search or title insurance.
• Survey. Some groups ask for a survey if the boundary is unclear.
• Environmental review. A charity may want a site check for dumping or contamination.
• Back taxes and liens. Most charities want these paid before they accept the deed.
• Closing and recording costs. Someone has to prepare and record the deed.
• Holding costs. Some charities ask donors to add a cash gift to cover taxes and upkeep until the land sells.

Costs vary by county and by charity. Ask the charity for a list of what it requires before you order an appraisal.

Steps to Donate Land

1. Pick the charity. Confirm it is a qualified organization with the IRS search tool.
2. Ask about its real estate policy. Find out what it accepts and what it will ask you to pay for.
3. Gather your documents. Deed, tax bills, parcel number, survey, and any notes on access or utilities.
4. Clear problems first. Pay or plan for back taxes, liens and title issues.
5. Order a qualified appraisal if the land is worth more than $5,000.
6. Sign and record the deed to the charity.
7. Get the written acknowledgment and the signed Form 8283 from the charity.
8. File Form 8283 with your tax return and keep all records.

Sell the Land, Then Donate the Cash

Some owners find that selling first and donating cash is simpler. Here is how the two paths compare.

Selling first has a tax trade-off. When you sell land you held more than a year for more than your basis, the gain is usually a long-term capital gain. The IRS explains this in Topic 409, Capital gains and losses. When you donate the land itself, you generally do not report that gain.

Selling first also has real benefits:

• No charity has to agree to take the land.
• You do not pay for a qualified appraisal.
• You can split the money between several charities, or keep part of it.
• A cash gift is easy for any charity to accept.

For land that has gone up a lot in value, donating the land directly may save more tax. For land with little gain, or land no charity will take, selling first is often the practical path. A tax professional can run the numbers for your situation.

You may also hear about a bargain sale. That is when you sell land to a charity for less than it is worth. Part of the deal is a sale and part is a gift. Publication 526 explains how the IRS splits it.

Selling Your Land to EasyLotBuyer

If you plan to sell first and give the cash, we can help. EasyLotBuyer buys vacant land for cash. We make a cash offer within 24 hours. There are no fees or commissions, and we pay the closing costs. We can close in as few as 7 days.

We also buy land that charities often turn down: land with back taxes, liens, title issues, or no road access, and land owned by heirs or estates. If back taxes are owed, they are paid at closing from the sale.

You can check a value range with our land value estimator, compare options with the offer calculator, or request a cash offer. For the full process, see how to sell land.

FAQ

Can I get a tax deduction for donating land?

Yes, if you give it to a qualified organization and you itemize deductions. For land held more than a year, the deduction is generally its fair market value, subject to AGI limits. You need a qualified appraisal and Form 8283 Section B if you deduct more than $5,000.

Do I need an appraisal to donate land?

You need a qualified appraisal from a qualified appraiser if your deduction for the land is more than $5,000. The appraisal fee is not part of your charitable deduction.

What is Form 8283?

Form 8283 is the IRS form for noncash charitable gifts over $500. For land over $5,000, the appraiser and the charity both sign Section B.

Will a charity accept land with back taxes?

Many will not. Most want back taxes, liens and title problems cleared first. Ask the charity before you start.

Is it better to donate land or sell it and donate the money?

It depends on your gain, your income and whether you itemize. Donating land can avoid capital gains tax on the increase in value. Selling first avoids the appraisal and the need to find a charity that accepts land. A tax professional can compare both for you.

Can I donate land if I do not itemize?

Not for a deduction. Starting in 2026, non-itemizers can deduct some cash gifts, but not gifts of land.