Benefits of a Real Estate Gift
When you give real estate to Florida State University, you can not only support the mission of the University, but you also reap benefits for yourself and for loved ones.
Valuable income and estate tax deductions
When you make an outright gift of property held for more than a year, you obtain an income tax charitable deduction equal to the property’s full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes.
Avoid capital gains tax on property’s appreciation
By donating the property to Florida State University, you also avoid capital gains tax on the property’s appreciation. Furthermore, the transfer isn’t subject to the gift tax, and the gift reduces your taxable estate.
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 charitable deduction, which represents a tax savings of $42,000 in her 28 percent tax bracket. And she completely avoids tax on the $100,000 of appreciation. Now she no longer has to maintain the cottage, and the property won’t be taxable in her estate.
Giving to make a difference
Before you sell real estate, consider another option—donate the property to The Florida State University Real Estate Foundation. You can give the property outright, place it in trust, retain the use of it for life or give it by will. All of these methods will enable you to enjoy personal financial benefits while supporting the University in a meaningful way.
Chief Financial Officer