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A charitable gift of real estate is an opportunity to make a big impact with an asset that may otherwise be a burden. There are also special tax-saving opportunities.
Benefits of giving real estate:- You may earn an income tax charitable deduction, and avoid capital gain tax liability.
- The real estate might otherwise have been a management and disposal headache for you or for your heirs.
- It may be possible to give the real estate and also receive a regular income for life.
- A special opportunity exists to leave a house or farm to the Foundation in the future, at your death, and yet receive an income tax charitable deduction NOW for a large portion of the property’s value.
- If you have income-producing real estate that you would like to pass on to heirs (or a combination of real estate and a liquid asset), you may be able to pass the real estate on to heirs with a significant deduction (sometimes elimination) of gift taxes, through a “charitable lead trust”. The real estate and any growth in value will pass to heirs estate-tax free.
If you or your business have income-producing real estate that you wish to hold for long-term growth in value, you can place the real estate in a grantor charitable lead trust, have the income go to the Foundation for a period of years, earn a large income tax charitable deduction (but pay tax on income as it is received), and then receive the property back at the end of the chosen period.