In recent years, real estate has appreciated substantially. If you want to make a substantial gift to charity, donating real estate may offer several benefits:
* Cash-less contributions. Your bank accounts and your investment portfolio can remain intact.
* Tax benefits. Assuming you’ve owned the donated property for more than a year, you can take a current income tax deduction for its fair market value.
Such charitable deductions usually are limited to 30 percent of your income. If you make a larger contribution, the excess deductions may be taken over the next five years.
Besides your writeoff, unrealized capital gains won’t be taxed if a property is given to charity.
* Estate planning. Property that you donate (and any future appreciation) will be excluded from your taxable estate.
* Philanthropic satisfaction. Giving real estate can enable you to make a meaningful contribution to charity you’d like to support.
