Giving Real Estate
Real estate includes homes, cabins, commercial buildings, farm land, and other property. Gifts of this nature can be very helpful to the University while providing you with substantial benefits, too. If the value of your property is more than you wish to give (or deduct) in any given year, you may make a gift of only a part of your interest in it. As an example, if you own farm land but do not wish to contribute all of it, you may donate a partial interest. The Foundation reviews each potential gift of real estate before accepting the gift.
The Benefits To You
- Current income tax savings, thus lowering the cost of your gift. You can claim charitable deductions up to 30 percent of your adjusted gross income for gifts of appreciated assets in the year you make the gift. Excess deductions may be carried over for up to five years.
- Charitable deduction and bypass of capital gains. You can make a gift with appreciated long-term capital gains property such as real estate, get a charitable deduction for the full fair market value (up to 30 percent of your adjusted gross income), yet pay no capital gains tax on the appreciation. You can even carry excess deductions over an additional five years, as long as the deduction does not exceed the 30 percent ceiling for any one year.
Personal Property
Works of art, antiques, rare books, coin collections, almost anything of value, can be used to make a gift to the University. If you donate these gifts during your lifetime, you may be entitled to a charitable income tax deduction of either your cost basis or the property's current fair market value. Gifts of personal property are subject to certain conditions that do not apply to gifts of cash, securities, or real estate. For example, for a gift to be deductible at full fair market value, it must be directly related to the mission of the University. Likewise, an artist who wishes to donate one of his/her own works is only able to deduct the cost of materials used to create the work. Gifts valued at more than $5,000 must have a qualified appraisal in order for the donor to obtain a tax deduction. Therefore, before making such a gift, you should first contact a development officer at the Foundation or at the campus, college, or program you wish to benefit to discuss details of use, valuation, and deductibility.
To request a development officer's contact information, contact Sue Kringen.
E-mail: jczapiewski@bemidjistate.edu
Phone: 218-755-4039
