Red hot real estate: Structure smart gifts to charity without getting burned

February 9, 2021

The housing market is showing no signs of slowing down in 2021.

For certain clients, this presents a strong opportunity for charitable gifts of real estate, whether a primary residence, second home, rental property, or even niche commercial property that’s benefited from a multi-faceted pandemic marketplace.
 
As is the case with gifts of other long-term capital gains assets, gifts of real estate to a charity can be extremely tax-efficient. Whether your client is giving a second home, rental property, or commercial property to a fund at Greater Cincinnati Foundation, the client may be eligible for a charitable tax deduction of the fair market value of the property. Because GCF is a public charity, when the property is sold, the full amount of the proceeds will remain in the fund–not subject to income tax. 
 
Your team at Greater Cincinnati Foundation can help you as your client considers gifts of real estate.
 
Finally, if your client would like the gift of real estate to benefit one or more favorite nonprofit organizations, GCF can help facilitate a transfer into a donor advised fund, from which your client can recommend grants to the charity or charities after the property sale is complete.