19 May Making a Charitable Gift of Real Estate
While cash is a meaningful and efficient way to support the causes important to you, it is not the only way to make an impact! In fact, one of the best ways to give is a gift of real estate.
By giving residential or commercial real estate to OCCF:
- You pay no capital gains tax.
- The asset is no longer part of your estate, possibly lowering estate taxes.
- You save the expenses of maintaining, insuring or repairing the asset.
- You receive an income tax deduction (up to 30% of adjusted gross income).
- You receive the satisfaction and joy of knowing your asset will help a worthy cause.
Donating real estate might prove beneficial if it meets some or all of the following criteria:
- The property has been held for more than a year and has appreciated significantly.
- The property is marketable and relatively easy and cost-effective to liquidate.
- The property is debt-free.
- You, as the owner, are willing to irrevocably transfer the property to the charity, which will negotiate the sale price and control the sale, often using an experienced intermediary.
- Sale negotiations have not proceeded to the point at which the IRS would consider it a prearranged sale, which could result in you bearing the tax liability for any gain on the sale.
Donating real estate to a fund at OCCF is easy:
- Review the asset with OCCF and ensure it can be accepted
- Transfer your asset by deed to OCCF
- Hire and obtain an appraisal to provide an estimated value
- Take an income tax deduction for the full amount of your gift, up to 30% of your adjusted gross income (AGI) this year
- If your deduction exceeds 30% of your AGI, you have up to five additional years to carry forward the deduction.
Always check with your legal and tax professionals when making a gift to charity.
To discuss if a gift of real estate is best suited for you and OCCF, please contact our Philanthropic Strategy team directly:
Sr. Director of Philanthropic Strategy