Current income tax deduction
No capital gains taxes
Please be advised that the information provided in this Commonweal Planned Giving Program Guide is not intended as tax or legal advice, but as accurate and authoritative general information on planned giving. For legal advice, please consult with your attorney and/or tax advisor.
The tax benefits of appreciated real estate are virtually identical to those for gifts of appreciated securities. First, you avoid capital gain tax on the property’s increased value. Second, you receive an income tax charitable deduction for the full fair market value of the property contributed.
Gifts of appreciated real property such as undeveloped land, commercial property, farms, or personal residences may be transferred to Commonweal, with approval of the Commonweal Board of Directors. This may be accomplished by deed during a donor’s lifetime, or through his or her will.
As with gifts of cash and appreciated securities, real estate gifts can be made outright, or through an income-producing gift arrangement. It even is possible to make a tax-deductible current gift of your home, continue to live in and enjoy it for your lifetime, and yet still realize an income from your gift through a process called “retained life estate agreement.”