What Is the 170 Deduction?
The "170 deduction" refers to Section 170 of the Internal Revenue Code, which allows a federal income-tax deduction for charitable contributions to qualified organizations. It is the rule that lets individuals and businesses deduct donations of money and property to charities, churches, and other tax-exempt entities.
What § 170 Covers
- Cash gifts to qualified charitable organizations
- Gifts of property, including appreciated assets and, notably, real estate
- Conservation easements — donating development rights on land, a specialized § 170 deduction
Key Rules and Florida Relevance
The deduction is subject to percentage-of-income limits, requires the taxpayer to itemize, and demands proper substantiation — including a qualified appraisal for larger gifts of property. Gifts of appreciated real estate or a conservation easement can offer significant tax benefits and are part of many Florida estate and land-planning strategies, but the rules are strict and heavily scrutinized. Because Florida has no state income tax, the § 170 deduction is a federal benefit. These transactions should be structured with tax and legal counsel.
Related Terms
- Title 26 U.S.C. — The Internal Revenue Code, home of § 170
- Easement — As in a donated conservation easement
- Estate Planning — Where charitable strategies are coordinated
Barnes Walker
Barnes Walker's attorneys coordinate Florida real estate and estate planning with their federal tax consequences. Request a legal inquiry for assistance.
Federal Law Reference
26 U.S.C. § 170
Allows a federal income-tax deduction for charitable contributions to qualified organizations, subject to percentage-of-income limits, itemization, and substantiation (including appraisals for larger property gifts).
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC