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Gifts of Real Estate
Gifts of real estate can secure you a charitable income tax deduction, based on the fair market value of the property, with no capital gains liability for the transfer.
If the property has been held for over a year, you receive a charitable income tax deduction based on the appraised value. This can be used to take a deduction of up to 30 percent of your adjusted gross income and can be carried forward for up to five additional years.
This frees you 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 still need to use the real estate that I want to give?
You can irrevocably deed a residence 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. Learn more about this type of retained life estate gift.
What if I still need the income from the real estate I own?
Your real estate gift can generate income for you by funding a life income gift, such as a charitable remainder unitrust. Learn more about unitrusts.
If you are planning to give real estate to Safe Horizon, we will need the following from you to evaluate whether we will be able to accept the gift:
- You will need to obtain a philanthropy title report.
- Our advisors may need to inspect the property and complete an appraisal.
The IRS requires an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures and obtaining the independent appraisal.