Gifts of Real Estate

Gifts of real estate or other property can be given outright, held in trust to retain use of it during your lifetime, or given as a bequest in your will.

Gifts of Real Estate

Real estate is not often thought of as the perfect charitable gift, yet a gift of real estate can enable a donor to make a greater charitable difference than they thought possible. If given as a bequest, it can reduce estate taxes and minimize or eliminate a burden placed on heirs. With the help of LFC, you can use this asset 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.

Why establish a gift of real estate?

  • 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.