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Gifts of Real Estate
 

Gifts of real estate frequently save you thousands of dollars in income or estate taxes. We accept gifts of residential, commercial, or undeveloped real estate. 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.

What is a gift of real estate?

If the property is a long-term asset (held for over one year), you receive a charitable income tax deduction based on the appraised value. You may apply the deduction for up to 30 percent of your adjusted gross income and carry it forward for up to five additional years. Furthermore, you are freed from paying real estate taxes, maintenance costs, insurance, and capital gains taxes on the propertyís appreciation. You also avoid capital gains taxes on the transfer and remove the asset from your taxable estate.

What if Iím still using my real estate?

You can irrevocably deed a residence (such as your home, cabin, or farm) to us but reserve the right to use it during your lifetime. This arrangement creates an immediate income tax deduction and a federal estate tax deduction. Click here to read more about retained life estates.

What we need from you:

We will gratefully review your gift possibility and evaluate the condition and marketability of the property.

  • You will need to obtain a philanthropy title report and an independent appraisal.
  • Our advisors will inspect the property and complete an environmental checklist. We may need to conduct a phase one environmental study in some cases.
  • The IRS requires an independent appraisal to establish the fair market value of the property. We can assist you in the following IRS procedures.

For more information, e-mail garderk@redcross-cleveland.org or call 216.431.3215 so that we can assist you through every step of the process.



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3747 Euclid Avenue   Cleveland, Ohio   44115-2596
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