gifts of real estate
In Arizona, a state in which property values have dramatically escalated in recent years, a gift of appreciated real estate may provide the donor with considerable tax advantages. The Boys & Girls Clubs of Greater Scottsdale Foundation can provide the assistance needed to complete such a charitable transaction.
The tax benefits for gifts of appreciated real estate held for more than one year are virtually identical to those for gifts of appreciated securities held for more than one year. First, you avoid capital gains tax on your appreciated property. Second, you receive an immediate income tax charitable deduction for the full fair market value of the property provided that the gift does place the donor over the 30% threshold of adjusted gross income.
Gifts of appreciated property such as undeveloped land, farms or personal residences may be transferred to the BGCGS Foundation by deed. A current appraisal of the property, if not available, should be provided by the donor.
If you own your own home, farm or vacation property you may be able to make a gift of the property, obtain an immediate income tax deduction and still continue to use the property as long as you wish. How does that work? Simply donate the property to the BGCGS Foundation but retain the right to use it for your life. You can continue to live in your home or use your vacation property or farm just as before. Upon your death, or the death of your spouse, the charity will assume the usual ownership rights in the property.
By making this gift now, rather than in your will, you may receive an immediate income tax deduction for the present value of the Boys & Girls Clubs future rights in the property.