Gifts of Real Estate
"Let there be few words and many deeds, and let them be done well." - St. Vincent Pallotti Gifts of real estate frequently save you thousands of dollars in income or estate taxes. We accept gifts of residential, commercial or undeveloped real estate. Gifts of real estate secure a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the transfer. What is a gift of real estate?
If the property is a long-term asset (held for over one year), you receive a charitable income tax deduction based on the appraised value. You may apply the deduction for up to 30 percent of your adjusted gross income and carry it forward for up to five additional years. Furthermore, you are freed 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’m still using my real estate?
You can irrevocably deed a residence (such as your home, cabin, or farm) 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. What we need from you.
We will gratefully review your gift possibility and evaluate the condition and marketability of the property. 1. You will need to obtain a philanthropy title report and an independent appraisal. 2. Our advisers will inspect the property and complete an environmental checklist. We may need to conduct a phase one environmental study in some cases. 3. The IRS requires an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures. For more information For more information on gifts of real estate, please email or call St. John's Foundation at (217) 544-6464, ext. 45160. * The information contained in this website is for informational purposes. You should seek advice from your personal legal or tax advisor to determine your individual tax benefits.