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6 Ways to Donate Real Estate

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Think Twice Before You Put Out the "For Sale" Sign Consider a Gift of Real Estate 1 ] Make a Gift Today In addition to freeing you from the costs and responsibilities of ownership, making an outright gift of property that you've owned for more than a year offers these benefits: • You qualify for an income tax charitable deduction equal to the property's fair market value. This deduction reduces the cost of making your gift and frees cash that otherwise would have been used to pay taxes. • You eliminate capital gains tax on the property's appreciation. • The gift reduces your future estate administration costs. EXAMPLE Mary gives us a vacation cottage she no longer uses. It originally cost $50,000 but is now worth $150,000. She gets a $150,000 federal income tax charitable deduction, which represents a tax savings of $48,000 in her 32 percent tax bracket, and she completely eliminates tax on the $100,000 of appreciation. Now she no longer has to maintain the cottage. In addition, the property is removed from her estate, reducing her future estate administration expenses. Imagine avoiding the hassle of selling a piece of property, with no worry about getting a fair price, and at the same time qualifying for a federal income tax charitable deduction. This can be your reality when you consider using real estate to make a gift to the University of Florida. A gift of real estate can be completed in a variety of ways. Here are some examples: fair market value: the price that a willing buyer and a willing seller can agree on capital gain: the increase in value of an asset since its original purchase irrevocable: cannot be changed or canceled revocable: able to be changed or canceled

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