Real Estate

Note: Deferred giving offers other ways to make gifts of real estate: life estate agreements, charitable remainder annuity trusts and unitrusts, and bequests.

The rules for gifts of real estate are essentially the same as for gifts of securities. Any real estate may be donated. You receive a charitable deduction for the full fair market value of the unencumbered real estate. You may apply the deduction up to 30% of your AGI in the year of the gift with the five-year carry-over provision. You avoid capital gains taxes on the appreciation you have in the property. There are no gift taxes, and you have removed the property from your estate, thereby reducing your estate taxes.

Almost any type of real estate may be contributed: undeveloped land, farms, commercial buildings, vacation homes, or your residence.

Potential gifts of real estate are evaluated by Peter & Paul Community Services on a case-by-case basis before acceptance. PPCS must consider insurance, environmental, maintenance, property tax liability, and other potential risk factors, including special tax provisions which apply to certain types of real estate.