Gifts of Real Estate
Complete Gift Description
Gifts of real estate frequently save you thousands of dollars in income or estate taxes. Gifts of real estate can 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. We will gratefully review your gift possibility, and evaluate the condition and marketability of the property. This will help us determine the suitability of the gift.
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. Click here to read more about retained life estates.
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. Click here for more information about unitrusts.
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 advisors 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.