Real Estate Gifts

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Is giving Real Estate right for you?

  • Do you own residential, commercial, or undeveloped real estate that has
    appreciated in value and you no longer wish to maintain or manage it?
  • Do you have a vacation home that your family no longer uses?
  • Would you like to use your real property to pay income to you for life?

If you answered “yes” to any of these questions, a gift of real estate to RMHC Central Valley may be a good option for you.

The Benefits of a gift of Real Estate

  • Avoiding or reducing capital gains tax you would realize on a sale.
  • Potentially a significant income tax deduction.
  • The satisfaction of making a huge impact through the work of RMHC Central Valley.
  • The possibility of making a gift AND receiving income for life.

Type of Real Estate Gifts

Benefits to you include an income tax deduction for the property’s fair market value and avoidance of potential capital gains taxes.

If you do not wish to donate the entire property, you may deed RMHCV an undivided partial interest. The property is then sold and you receive the cash on your interest. Your charitable deduction for the gift portion can help offset the capital gain tax on your portion of the property sale proceeds. In some cases, the transaction can be a “zero tax” sale.

Still need income from the property? A Charitable Remainder Trust may be a great option for you. The property is irrevocably transferred into a trust and then sold. The proceeds are then invested and generate earnings which pay you income for life or a term of years. Some of the income may be tax-free. Upon your passing, the remaining principal goes to RMHCV to support their hope-inspiring work. Additional immediate benefits to you may include a substantial income tax deduction and no capital gains tax at the time of the gift.

You can make a testamentary gift of real estate through your will or trust.


RMHCV Real Estate Donation Policies

  • RMHC Central Valley will normally sell donated property rather than manage and maintain it.
  • Before accepting real estate donations, RMHC Central Valley will thoroughly inspect the property and ensure there are no significant liabilities associated with it.
  • Due to tax issues, debt-encumbered property is normally not appropriate for real estate donations.