Gifts of Real Estate

At a glance:

  • Make a meaningful gift
  • Avoid tax on appreciation
  • Create an increased income for life from underperforming assets
  • Receive a current charitable tax deduction

Depending on the circumstances that are involved, gifts of real estate can be an effective means of planning a gift. Much of the individual wealth in America is invested in real estate. While the first thought often is a home or farm, real estate also can involve a vacation or second home, an apartment or commercial building, a shopping center, or undeveloped land. Each piece of property and its unique circumstances need to be reviewed to determine the suitability of the property as a gift. Generally speaking, a rule of thumb is that an acceptable piece of property is one that can be readily sold.

Also, there are many ways to donate property. It can be an outright gift, which would potentially provide current tax advatages. It could be a retained life estate, providing tax benefits now while retaining the right to live on the property for life. Real estate can also be placed in a trust, providing tax benefits and also an income for life. And, real estate may be part of a bargain sale/gift to provide funds to pay of a mortgage and tax benefits for the gift portion. In addition to making a significant contribution, there can be other benefits for you in making a gift of real estate:

  • There may be a charitable income tax deduction that would lower your income tax.
  • If your property has appreciated in value since you acquired it, there might be a large capital gain tax that would result if you sold it. By donating the property, you may be able to avoid realizing the capital gains.
  • Depending on your state regulations, you may be able to turn the property into a gift that is structured to provide income for you and a beneficiary.
  • If the property is your home or farm, you may be able to make a gift of it now and continue to live in it for the rest of your life and receive tax benefits the year of the gift.
  • If the contribution from your property exceeds the allowable charitable deduction limits, the deduction may be carried forward for five years.

There can be significant advantages to using property as a charitable gift. Eileen found a gift of real estate was the answer to a number of her concerns - see her story for more information. In any case, while we discuss some generalities here about donating real estate, if you are considering such a gift to Maryland Public Television, please contact us to discuss its suitability, benefits and to discuss your unique circumstances.


Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Planned Giving section has been developed for Maryland Public Television by Future Focus. Please report any problems to section webmaster.