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.
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 property’s appreciation. You also avoid capital gains taxes on the transfer and remove the asset from your taxable estate.
It is also possible to make a gift of your home, farm, or vacation home so that you and your spouse can continue to use it for your lifetimes—while you receive a tax deduction the year it is gifted.
The Springfield Symphony urges you to discuss your tax planning with your accountant or other professional advisor. If you have any further questions please contact: