Gifts of Appreciated Real Estate

The tax benefits of appreciated real estate (for example, undeveloped land, commercial property, farms, vacation homes or personal residences) are virtually the same as with appreciated securities. In addition to avoiding capital gains taxes on the growth in value, you also receive an income tax deduction for the full fair-market value of the property contributed. Gifts may be transferred by deed during a donor's lifetime, through a donor's will or through a reserved life estate arrangement, which enables you to make a tax-deductible current gift of your home or property while still living in the property for the remainder of your life (for details, see Gifts That Produce Income).

For more on planned giving, please click here.

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