Donate Real Estate? Really?
At first glance you might ask “Why in the world would I make a gift of real estate?” However, it’s really not an unusual practice – more common, of course, for donors who have a large real estate portfolio. But anyone may give such a gift and donors gifting real estate (and other valuable property such as stock, coins, savings bonds, art, etc.) typically find that they can enjoy significant financial benefits while simultaneously providing a charitable benefit to their community.
Donating appreciated real estate offers many advantages. A real estate donation to charity can:
- Help you rid yourself of non-producing properties
- Avoid capital gains tax on highly appreciated property
- Significantly reduce your legal and tax liabilities on the properties you donate
- Reduce or eliminate a financial burden on heirs
- Fulfill a personal philosophy of giving
- Attain planned personal financial goals, all while supporting charitable endeavors.
An outright gift to a public charity allows you to deduct the property’s fair market value. Gifts to The PCCA, a 501(c)(3) charity (Federal Tax ID #77-0630225) are deductible for federal and state income tax purposes to the extent provided by law.
How Much Can I Deduct?
In general, an individual who itemizes deductions may deduct contributions to most charitable organizations. In accordance with its IRS charter, PCCA is a public charity for which deduction are allowed at the maximum deductibility limitation; that is, 50% his or her adjusted gross income computed without regard to net operating loss carrybacks.