Gifts of Real Estate: The Details
Make an extraordinary gift, transfer the burden and expense of managing the property, and remove a large asset from your taxable estate at the same time.
Is this gift right for you?
A gift of real estate is for you if…
- You hold readily-marketable residential, commercial or undeveloped real estate that has risen in value that you no longer wish to maintain.
- You are concerned about rising real estate taxes and the capital gains cost of selling the property.
- You have vacation property no longer needed by any family member.
- You would like to consider using your real property for a life income giving arrangement.
- The property is useful to our mission or can be sold easily.
We are happy to consider gifts of residential, commercial and undeveloped real estate.
As with donations of other types of appreciated property, 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 to Yale.
You can donate real estate to Yale in several ways:
- As an outright donation;
- As the donation of a fractional interest in the property;
- As the asset to fund a gift plan that will pay you income, such as a charitable unitrust;
- By donating your home, while at the same time reserving the right to continue living there for your lifetime or for the lifetime of someone else such as a spouse or sibling (a retained life estate).
When you are considering a gift of real estate, keep two considerations in mind:
- We will gratefully review your offer and evaluate the condition and marketability of the proposed real estate to determine that the donation is risk-free and appropriate for all parties.
- The IRS requires donors of real estate to secure an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures for this appraisal.