Partial House Donation Misses Out On Charitable Tax Break

A couple who donated their house to a charitable organization aren’t eligible for a charitable-giving tax break because they hadn’t donated their entire interests in the property or all elements of the house, the Fourth Circuit ruled.

Lawrence and Linda Mann decided to tear down the existing house on their Bethesda, Md. land and build another. Through an agreement with Second Chance—a charitable organization—they stated they were donating the existing house to the organization but not the land. They claimed a charitable-giving tax deduction of nearly $675,000, representing the appraised value of the house as if it were ...