Real Estate Gifts - The tax-wise alternative to selling
Today, a number of those who purchased investment properties during the real estate boom of the 1980's are tired of the taxes, maintenance, and management that accompany property ownership. If the same is true for you, why not consider giving the property to charity? You can avoid the stress associated with a sale and ultimately make a more significant gift than the sale proceeds would have allowed.
An Example:
Martha is a sixty-year-old-widow who owns real estate that was purchased 15 years ago for $10,000, but today is valued at $100,000 . If she sells the property and donates the proceeds, she will first have to deduct capital gains tax of about $18,000, leaving only $82,000 for SBU. But if she makes an outright gift of the property, she can claim a $100,000 tax deduction, owe no capital gains tax, and when SBU sells the real estate it will receive the full $100,000.
Note: An appraisal is required on all gifts of real estate valued at $5,000 or more.
