Benefits of Donating Real Estate
Did you know that your personal residence, vacation property or land has a significant value for charitable giving? A donation of real estate helps you achieve your charitable goals and provides you with maximum benefits allowed by law. Donating real estate is not only beneficial, but flexible! If you’re interested in learning more about the gift of real estate, the San Diego Charitable Real Estate Foundation (CREF) can help you convert your real estate holdings into charitable gifts.
When you donate real estate ...
- You will receive the maximum tax deduction allowed by law
- You avoid capital gains tax
- You participate in an opportunity to diversify your assets
- You can establish an income stream for your lifetime
- You can fully achieve your dreams of charitable giving
Options for Gifts of Real Estate
- Land (undeveloped parcels, vacant lots, parking lots)
- Investment property (residential, commercial, industrial)
- Vacation property (no timeshares)
- Personal residence
Ways of Giving Real Estate
Give the Entire Property as a Current Gift
- Title is transferred to the San Diego Charitable Real Estate Foundation (CREF)
- You receive an immediate deduction for the fair market value of the property (based on qualified appraisal)
- CREF sells the property and deposits the proceeds into your fund at The Foundation
- Proceeds are used to support your charitable goals
Giving Part of the Property as a Current Gift
- You gift an undivided interest in a portion of the property to CREF
- CREF and you sell the property together
- You receive the proceeds and tax benefits from the portion retained
- The proceeds from the portion gifted are used to establish a fund at The Foundation to support your charitable goals
Give the Property for a Charitable Gift Annuity
- You gift your property to CREF
- The Charitable Gift Annuity contract is determined based on the appraised value less a discount
- You receive a charitable deduction for the present value of the remainder of the gift
- You receive a guaranteed annuity for your lifetime and a portion of it is tax free income
- You avoid the capital gains tax from an outright sale of the property
- Upon annuitant(s) death, the remaining funds are utilized to establish a fund at The Foundation to support your charitable goals (Note: Mortgaged property may fund a gift annuity)
For more information on the benefits of a Charitable Gift Annuity, click here.
Give the Property in Trust
- You establish a Charitable Remainder Trust (CRT) naming The San Diego Foundation as the charitable remainderman
- The property is gifted into the trust
- You receive a tax deduction for the net present value of the gift, and there will be no tax on the appreciated value of the property
- The property is sold and reinvested in the trust
- You receive an income from the trust for a term of years up to 20 years or life (up to two beneficiaries)
- At the end of the trust term, the remainder is deposited into your fund at The Foundation to support your charitable goals
Bargain Sale
- You want to make a charitable contribution but need to receive some cash for the property
- You establish the amount you are willing to sell the property to CREF for, which is less than the appraised value
- You receive a charitable deduction for the difference between the bargain sales price and the appraised value
- There is no capital gain on the gifted amount
- Upon the sale of the property to a third party, the net proceeds are used to establish a fund at The Foundation to support your charitable goals
Give the Property and Continue Residence: A Life Estate Reserved
- You continue to live in the residence; the donation will be received after death
- You receive a charitable deduction for the present value of the gift
The Gift Making Process
- Contact CREF to initiate the gifting process. CREF accepts the gift and handles the sale of the property
- You order an appraisal by a qualified appraiser to substantiate the value of the charitable deduction; The Foundation can assist in locating a qualified appraiser
- The debt on the property needs to be addressed. The Foundation can help to explore various options with you
- CREF will review the site, location, estimated value, marketability, tenant issues, any special circumstances and will discuss with you
- You transfer title and ownership to CREF
- You file IRS Form 8283, Non-cash Charitable Contribution Appraisal Summary
- CREF lists the property for sale with a qualified broker
- Proceeds of the sale are deposited into/or are used to establish your fund at The San Diego Foundation
- The Foundation works with you to clarify the organizations or causes you want to support through your fund
- If the property sells within two years, The Foundation will report the sale to the IRS on Form 8282
Who should I contact?
Bring your charitable dreams to life with a gift of real estate ... For more information, call or e-mail:
Berit Durler
Executive Director, San Diego Charitable Real Estate Foundation
(619) 235-2300
berit@sdfoundation.org
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