.	You’re considering a gift made during your lifetime > You hold marketable real estate > You want to save both income tax and capital gains tax

Many Kansas City charities are happy to consider gifts of residential, commercial and undeveloped real estate. As with donations of other types of appreciated property, gifts of real estate secure a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the charitable transfer.

You can give real estate in several ways:

• Through an outright donation;
• Through the donation of a fractional interest in the property;
• As the basis for a gift plan that will pay you income, like a unitrust.
• By giving your home and reserving the right to continue living there for your lifetime (a retained life estate);
• Through a part sale/part gift arrangement (a charitable bargain sale).

When you are considering a gift of real estate, keep these considerations in mind:

1. First, the charity will gratefully review your gift offer with its financial officers, who evaluate the condition and marketability of all proposed real estate acquisitions and have the final say on acceptance.
2. Second, the IRS requires donors of real estate to secure an independent appraisal to establish the fair market value of the property. Your charity can assist you in following the IRS procedures for this appraisal.
3. Most knowledgable charities will require gifts of real property to be accompanied by a Phase I Environmental Audit. A possible exception could be residential property, used solely for residential purposes, for an extended length of time. Consult with the charity's development office for gift acceptance policies specific to the particular charity.

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