From farmland to timberland to vacation residences to rental properties, a gift of real estate can unlock the full value of your property and offer special economic advantages. You can make a substantial gift through a transfer of residential, commercial, or undeveloped real estate. If you own property not subject to a mortgage which has appreciated in value, a charitable gift to Penn State may be an attractive proposition.
Here are some options to make gifts of real estate to Penn State:
- An outright gift of appreciated property offers maximum tax advantages because the charitable deduction is generally based on the full fair market value of the property. An appraisal is needed for IRS purposes.
- A gift of the remainder interest in your home or farm (called a “retained life estate”) can provide a current tax deduction, avoid capital gains taxes, and allow you to continue to live in your home.
- A gift (or partial interest) of appreciated property can be used to create a charitable remainder trust, which will provide you (and/or you and a second beneficiary) an annual income for life.
To learn more about how you can make a gift of real estate, download our Gifts of Real Estate fact sheet and other publications
Penn State’s Office of Gift Planning will confidentially answer your questions about giving and work closely with your legal, tax, and other advisers to come up with an integrated plan that meets each of your personal goals. Please contact us anytime or click here to learn more.