Thinking about a Gift of Land?

Land Gift

Many friends of charities have benefited from a gift of land or a gift of land with a building or other structure. There are two main benefits for this gift. First, there is a charitable deduction, normally for the fair market value at the time of the gift. Second, if the real estate has appreciated the gift to a qualified public charity bypasses or avoids the capital gains tax.

The combination of a substantial charitable deduction and a bypass of capital gain is an excellent double benefit. Many donors who sell other property or have substantial income will be able to use this charitable deduction to reduce their income taxes.

There are several reasons why you might consider a gift of property. You may have recently sold another property and could use the charitable deduction. If you have commercial or rental real estate, eventually your rental income increases while your depreciation is gradually reduced. With increased rents and reduced depreciation, you may have a very substantial income tax problem.

For more information regarding Gifts of Land or Real Estate click here.

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