A gift of real estate may be a principal residence or vacation home, a farm, a commercial building, a subdivision lot or unimproved land. The gift may be the entire property or a fractional interest in the property.
To optimize these advantages, the donor should own the real estate for at least one year, and the property should not be encumbered by a mortgage or other debt.
Benefits of donating real estate:
- Receive an income tax deduction for the full market value of the real estate.
- Avoid paying capital gains taxes on the appreciation built up in the property.
- Donate outright or establish a gift that pays you an income—or both.
- Support an area of Duke you feel most passionate about.
Use donated real estate for during your lifetime.
Retained life estate in property may generate a current income tax deduction by giving a home or farm to Duke, while retaining the right to use the property during your lifetime. The property will also be removed from your taxable estate.