Ways to Give - Real Estate and Tangible &
Intangible Personal Property
Real Estate
If
you own a home or other property you no longer wish to occupy or
manage, and you would like to make a charitable gift, you may find
that a gift of such property can be a very efficient way to meet
both goals. If you sell real estate you have owned for a number of
years, it is likely that you will be faced with a sizable capital
gains tax, especially if the property is not your residence.
Through an outright gift of such a property, a double tax savings
is possible. First, in most cases, you will receive a charitable
income tax deduction for the full amount of the property. In
addition, you will not be liable for capital gains tax on the
transfer, since the property was donated rather than sold.
You may donate a residence or condo, farm or
forestland, commercial property, or other real estate as an
outright gift or retain the right to occupy the property for life.
A gift of a remainder interest in a personal residence or farm
gives you a current income tax deduction for the present value of
the remainder interest and lets you eliminate any capital gains on
the appreciation.
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Example: A married couple ages 83 and 81
donated their interest in a retirement community with an
appraised value of $368,000. The couple retained the right to
live in the home for the remainder of their lives. The gift with
the life estate resulted in a charitable contribution of
$245,051. Upon the death of the last to die, the interest in
their retirement community home will be sold and the net
proceeds will be added to their endowment at the Office of
University Development.
Gifts of appreciated real property held more
than one year are generally deductible up to 30% of adjusted gross
income. Excess contributions may be carried forward for up to five
consecutive tax years. A qualified appraisal is generally needed
to substantiate a claim of an income tax charitable deduction with
respect to a donation of real estate if the claimed value exceeds
$5,000. An appraisal summary - IRS Form 8283 - must also be filed
with the federal income tax return on which the gift is first
claimed or reported.
Tangible and Intangible Personal Property
Works of art, rare books, antiques,
intellectual property and other tangible and intangible property
may also make practical and meaningful gifts. Special rules apply
to the tax benefits for such gifts. Whether your gift is
deductible as well as what the deduction amount will be depend
upon how the gift will be used and the appraised value.
The University of Maine Foundation has
professional giving officers ready to work with you and your
advisors. We may be reached Monday-Friday between the hours of 8
am and 5 pm by calling 1-800-982-8503 or via email at
umainefoundation@maine.edu.
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