Real estate is a great way to make a gift to BCD and still retain your cash or liquid assets. Real estate appreciates over time, and a gift of real estate can help to avoid or reduce a large capital gains tax.

You may make an outright gift that transfers the property to the Foundation, with a charitable income tax deduction for the appraised market value of the property. Or, a sale of your property to the Foundation for less than its fair market value--known as a bargain sale--offers you immediate payment for the property and the difference between the fair market value and the sale price becomes a charitable income tax deduction. This type of transfer allows you to avoid a portion of the capital gains tax liability.

A bequest of property may also be made, while a retained life estate program offers you transfer of ownership of your property to the school while you retain the right to live in and use the property during your lifetime.

The rules for gifts of real estate are essentially the same as for gifts of securities. Any real estate may be donated. You receive a charitable deduction for the full fair market value of the unencumbered real estate. You may apply the deduction up to 30% of your AGI in the year of the gift with the five-year carry-over provision. You avoid capital gains taxes on the appreciation you have in the property. There are no gift taxes, and you have removed the property from your estate, thereby reducing your estate taxes. Almost any type of real estate may be contributed: undeveloped land, farms, commercial buildings, vacation homes, or your residence.

Potential gifts of real estate are evaluated by BCD on a case-by-case basis before acceptance. The School must consider insurance, environmental, maintenance, property tax liability, and other potential risk factors, including special tax provisions which apply to certain types of real estate.

For more information about giving real estate, please contact your tax advisor.