| Real Estate |
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The rules for gifts of real estate are essentially the same as for gifts of securities. You receive a charitable deduction for the full fair market value of the unencumbered real estate. You may apply the deduction up to 30% of your adjusted gross income in the year of the gift with the five year carry-over provision. You avoid capital gains taxes on the appreciation you have in the property. There are no gift taxes and you have removed the property from your estate, thereby reducing your estate taxes.
Almost any type of real estate may be contributed. This includes undeveloped land, farms, commercial buildings, vacation homes, or your residence. Real estate may also be used to fund a charitable remainder trust.
Through a Life Estate Agreement, a donor can deed a primary or secondary residence to the Foundation while retaining the lifetime right to live there. Friends who offer Life Estate Agreements are also recognized by the foundation's Legacy Society.
Potential gifts of real estate are evaluated by the Raritan Bay Healthcare Foundation prior to acceptance. The Foundation must consider insurance, environmental, maintenance, property tax liability, and other potential risk factors, including special tax provisions, which apply to certain types of real estate.
