Giving Center offers a wide variety of options when it comes to making donations. One said option, is the ability to donate real estate. You may be thinking, how difficult is it to donate real estate? It may be a little more difficult than donating a box of your old belongings, but Giving Center is here to walk you through the process!
Below you’ll find some common questions asked when it comes to how you can donate real estate to charity.
What Assets Can Donors Use to Make a Planned Gift?
They can use cash, securities (stock, bonds, mutual fund shares) or real estate. They can give tangible personal property (artwork, books, artifacts, equipment, etc.) They can fund a gift plan with a business or partnership interest (closely held stock, a share in a professional corporation, an investment in a limited partnership). They can give you a paid-up life insurance policy.
Donors can also direct a charitable distribution from the balance remaining in their retirement plan (IRA, 401(k), Keough, etc.) at death. They can also make your organization the owner and beneficiary of a new life insurance policy.
What Are the Benefits of Donating Real Estate?
- You receive an income tax deduction equal to the appraised fair market value of the property, with no capital gains tax due on the transfer to us.
- You remove a large taxable asset from your estate.
- You can take advantage of a variety of gift formats available for a donation of real estate, each offering unique planning benefits.
What are the donor’s opportunities using real estate as an estate planning or tax structure vehicle?
- Help avoid capital gains taxes on the sale of property
- Shelter federal and state income tax burdens
- Light the costs of estate taxes for their heirs
- Relieve themselves from management and liability issues
- Provide a legacy and support several of their favorite charities in a single gift
- Have an opportunity to create a life time income stream greater than the one presently being produced by the real estate
How Will the Value of My Gift of Real Estate be Determined?
For all gifts of real estate worth more than $5,000, fair market value will be determined by an independent appraisal that you will obtain.
What Are the Advantages of Donating Real Estate, Rather Than Selling It?
The concept of donating versus selling is most easily explained with an example:
A 69 year old widow owns an office building. She would like to maximize the benefits of the asset for her children, and support her favorite charity, if possible. The table below summarizes her options. After careful consideration, she found the greatest benefit to her children and the charity was to donate the building.
How often are the tax laws and regulations that affect charitable donations changed?
The Internal Revenue Tax Codes are updated on an on-going basis. A qualified specialist should constantly monitor IRS changes to capital gains taxes, ordinary income taxes, gift taxes and inheritance taxes so they can provide you, or your company with the most up-to-date advice.
If you have questions about donating real estate to charity please contact us and speak to a live representative today. You can reach us at 1-888-228-7320 or visit our real estate website here.