Gifts of Real Estate

Real estate is not often thought of as a typical charitable gift, yet a gift of real estate may provide excellent benefits to both the donor and the charitable organization. For example, the tax credit generated by donating non-taxable property such as your principal residence, can be used to offset tax liabilities on other assets and income. Real estate may be given outright (during the donor’s lifetime) or as a bequest. Depending on your situation, gifting real estate may also eliminate conflict if some siblings wish to sell and others don’t. With the help of LFC, you can use a gift of real estate to fulfill your charitable interests and receive tax benefits as a result. Charitable gifts of real estate range from personal residences and vacation homes, to rental properties, farmland, and commercially-developed land.

• You have considerable real estate holdings but modest liquid asset holdings
• You do not need the property or the proceeds from its sale
• You receive an immediate donation receipt for the Fair Market Value of the donated real estate
• 50% of any capital gain on the property is taxable, but the tax credit arising from the gift will exceed the tax on the capital gain, resulting in tax savings
• There is no taxable capital gain if the donor donates his or her principal residence
• Donating qualified farmland eliminates capital gains tax on that land
• You can retain use of your property if you transfer it into a Charitable Remainder Trust

LFC recommends you speak to your tax and legal professionals as well as LFC prior to donating any property, to insure that the property being transferred can be accepted as a charitable gift.