Gifts of Real Estate

What are the benefits of giving real estate?

Congress has created special incentives to encourage certain forms of private philanthropy, especially gifts of real estate. Benefits may include:

• Reduced income, estate and property taxes
• Lower insurance and upkeep costs
• Avoidance of capital gains taxes
• Financial security for loved ones
• Increased lifetime income
• Continued use of the contributed property during your life

How can I make a gift of real estate?

Outright Gifts

Generally, a person who makes a gift of real estate held for more than one year is entitled to an income tax deduction equal to the full value of the property contributed. In addition, the donor escapes capital gains tax on the profit that would have been taxable if the property had been sold. Estate tax savings are also possible.

A Life Estate Agreement

If you own your home or farm - or even a vacation home - you may be able to make a gift of the property, obtain an immediate income tax deduction and still continue to use the property for as long as you wish. [More info]

Through Your Will

By giving real estate through your will, your gift can be outright or it can be contingent upon the happening of some event, i.e. death of one family member before another. [More info]

A Charitable Remainder Unitrust

A unitrust is a trust in which you irrevocably place property, but retain a specified income, usually for life. At the end of the trust, the trustee distributes your property to Bethesda. [More info]

Can I contribute just part of my property?

Yes. You can give a "partial interest" in property and receive an immediate income tax deduction.

For example, you could make Bethesda the owner of a 10% interest in your vacation home. In order to qualify for the tax deduction, you would have to contribute a 10% interest in every ownership right, including the right to use the property. Bethesda's real benefit is that whenever the property is sold, we will receive 10% of the proceeds - even if the sale doesn't occur until after your death. And the real benefit to you is a deduction for about 10% of the value of the gift property.

Who can I contact about giving a gift of real estate?

For questions and/or assistance, please contact one of our development representatives. You can also request printed materials online.