Strategies for Gifts of Real Estate

---

Several types of real estate make an excellent gift to support a non profit's mission.

* A Personal Residence or vacation home

* Income - producing properties - rental homes, vacation property, or commercial real estate

* Undeveloped land, farm and agricultural

* Land held to be protected or preserved

The simplest and fastest way to make a gift is to deed your property outright to a charity of your choice. 

The sale of an asset to a charity for a price that is less than fair market value. The donor receives cash and is allowed to take a charitable income tax deduction for the difference between the fair market value and the cash amount received. 

This technique includes a transfer of your property to a tax exempt trust. The trust then sells the real estate without paying capital gains and then reinvest the proceeds. The trust will pay you income for life, with the remainder of the account going to the charity. You will also receive a tax deduction for the amount that is given to charity. 

This strategy provides you with a current income tax deduction for making a future gift of your home, vacation home, farm, or ranch to charity now, while allowing you the right to continue to use the property for the rest of your life.

In exchange for your real estate gift, the charity will pay you fixed payments for life at a rate based on your age - no matter how long you live. The payment rates are very attractive and you receive an income tax deduction and partially tax free payments.