The rules about giving real estate are essentially the same as for gifts of securities. Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence.
You receive a charitable deduction for the full fair-market value of the unencumbered real estate. You may apply the deduction up to 30 percent of your AGI - in the year of the gift - with the five - year carryover provision. You avoid capital - gain tax on the appreciation you have in the property and there are no gift taxes. Because you have removed the property from your estate, you have also reduced your estate taxes.
We recommend discussing the benefits and provisions of this type of gift with your attorney and tax advisor.
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