How to Donate | Article Index |
|---|
| Gifts of Real Estate |
| Is This Gift Right for You? |
| Case Study |
| How to Complete Your Gift |
| Beyond an Outright Gift: Three Other Ways to Give Real Estate |
| All Pages |
Getting Started
Your property opens the door to a unique giving opportunity. From townhomes to farmland, many types of real estate assets can be donated to qualified charitable organizations like ours. You'll be helping a good cause, enjoying tax benefits and potentially setting up a lifetime stream of income.
Imagine avoiding the hassle of selling a piece of property, with no worry about getting a fair price and at the same time realizing valuable income and estate tax* deductions. This can be your reality when you consider using real estate to make a charitable gift to the El Dorado Community Foundation. Here's what you need to know.
Did you know?
Donating a home or other piece of real estate eliminates the capital gains tax that would be owed if you were to sell it.
How It Works
You can donate your property outright, place it in a trust or give it through your will. All of these methods will enable you to enjoy personal financial benefits while supporting our work in a meaningful way. Following are details on the most straightforward way to make such a gift: direct donation of your property.
How You Benefit
In addition to freeing you from the costs and responsibilities of ownership, making an outright gift of property that you've owned for more than a year offers these benefits:
- You obtain an income tax charitable deduction equal to the property's full fair market value. This deduction reduces the cost of making your gift and frees cash that otherwise would have been used to pay taxes.
- You eliminate capital gains tax on the property's appreciation.
- The transfer isn't subject to the gift tax, and the gift reduces your future taxable estate.
*Federal estate taxes are currently repealed for all deaths that occur in the calendar year 2010. In 2011, estate taxes are scheduled to be reinstated for estates worth more than $1 million at rates up to 55 percent. Congress, however, may address reinstating estate taxes before 2011. What the final legislation will look like and when it might become effective is unknown at this point.
**Assumes a 35 percent marginal income tax bracket and a 15 percent long-term capital gains tax bracket.