Gifts of real estate frequently save you thousands of dollars in income or estate taxes. We accept gifts of residential, commercial, or undeveloped real estate. Gifts of real estate secure a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the transfer.
What is a gift of real estate?
If the property is a long-term asset (held for over one year), you receive a charitable income tax deduction based on the appraised value. You may apply the deduction for up to 30 percent of your adjusted gross income and carry it forward for up to five additional years. Furthermore, you are freed from paying real estate taxes, maintenance costs, insurance, and capital gains taxes on the property’s appreciation. You also avoid capital gains taxes on the transfer and remove the asset from your taxable estate.
What if I’m still using my real estate?
You can irrevocably deed a residence (such as your home, cabin, or farm) to us but reserve the right to use it during your lifetime. This arrangement creates an immediate income tax deduction and a federal estate tax deduction.
What if I need income?
Your real estate gift can generate income for you by funding a life income gift, such as a charitable remainder unitrust.
Another option is a bargain sale. In this case, we consider purchasing property from you for a price lower than its appraised value. We receive the property, and you receive cash plus a tax deduction.
What we need from you
We will gratefully review your gift possibility and evaluate the condition and marketability of the property.
- You will need to obtain a philanthropy title report and an independent appraisal.
- Our advisers will inspect the property and complete an environmental checklist. We may need to conduct a phase one environmental study in some cases.
- The IRS requires an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures.
A gift of real estate is for you if…
- You hold residential, commercial or undeveloped real estate that has risen in value and that you no longer wish to maintain.
- We could use the property for our institutional purposes, hold as a source of rental income, or sell it.
- You own the property outright or are willing to satisfy any mortgages before donating it.
- The property is marketable and environmentally secure.