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The Free Methodist Foundation
8050 Spring Arbor Road
PO Box 580
Spring Arbor, Michigan 49283
phone: 517.750.2727
toll free: 800.325.8975
fax: 517.750.2752
email: info@fmfoundation.org
Giving Real Estate
Outright gifts of real estate 
If you own a home or other property you no longer wish to occupy or manage... and would like to make a charitable gift, you may find that a gift of real property can be a very efficient way to use your property to meet both goals.
When property has grown in value
If you sell real estate you have owned for a number of years, it is likely you will be faced with a sizable capital gains tax, especially if the property is not your residence.
Through an outright gift of such a property, a double tax savings is possible. First, in most cases you will receive a charitable income tax deduction for the full value of the property - a savings of as much as 40% or more of the property's value. In addition, you will not be liable for capital gains taxes on the transfer since the property was given rather than sold.
If you give property that has not been producing an income (and which may be incurring annual expenses), your gift does not adversely affect your current income.
Example: Jack Smith invested $10,000 in a parcel of real estate 15 years ago. It has recently been appraised at $50,000.
He decided to deed the land to fulfill an outstanding charitable pledge. He is entitled to a deduction of $50,000 on his income tax return for the year of his gift, which in his 36% tax bracket saves him $18,000 in taxes (more than he originally paid for the property). And because he made a gift, he will not owe the capital gains tax due if he sold the property. He also enjoys making a $50,000 gift in a manner that least impacts his current financial picture.
Make a gift... retain use of the property
If you would like to make a gift of your principal residence or perhaps a vacation home, you may do so in a way that allows you and your spouse, or another survivor, the right to enjoy the property for life.
A tax deduction is allowed for the value of the eventual charitable gift in the year the gift is arranged. This type of gift is generally most attractive to a person age 65 or older, and the deduction is greater during times of lower interest rates.
Example: Francis Smith, 78, is a widow with three children who live in other areas of the country and are doing quite well financially. She is planning to leave the bulk of her estate to them and is also considering making a charitable gift as part of her estate plan.
She decides to make an irrevocable gift of her home now. However, she retains the full rights and duties of ownership and benefits from her home for the rest of her lifetime.