Gifts of Real Estate
When appreciated real estate is given to us, capital gains taxes
can be completely avoided and the full fair market value of the
property is generally deductible as a charitable contribution.
Gift of a Remainder Interest in a Personal Residence or
A special provision of the tax law allows an immediate income
tax charitable deduction for a gift of a remainder interest in your
home or farm. With a remainder interest gift, you retain an
absolute right to occupy the home or farm for your life (or the
life of a family member). The property passes to us only after
termination of the life estate(s).
The charitable deduction allowable for this future gift is the
present value of our right to receive the property at some later
date. The age of the life tenant is the primary factor in
determining the present value of our deferred interest and the
charitable deduction. The gift is deductible in the year of the
transfer (subject to income limitations).
Gift of a Fractional Interest in Real Estate
Federal tax laws let donors take a charitable deduction for
gifts of fractional interests in real estate. This type of gift can
be especially rewarding when you own a vacation home that you use
only part of the year.
Example: Mary and Jim own a $300,000 vacation home that they use
for only two months of the year. They can give our institution a
50% interest in the property, secure a tax deduction for the value
of our interest in the property, and still have a right to use and
occupy the property for up to half the year.
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