Give A Gift of Real Estate of Other Asset

You may have a home, piece of land, or other tangible asset (stocks, bonds, insurance policies, etc.) that you’d like to give as a donation. Making a donation of this kind may have special tax advantages for you, the donor, while being a blessing to BHA. If you have owned any of these items for more than one year, you can give the appreciated property and deduct the entire value from your taxable income.

In addition to the normal tax savings you and I can take for contributions, when it comes to capital gains on appreciated property that is given directly to a qualified charity, we can take the entire value of the gift as a deduction. This additional savings has encouraged many to make gifts of appreciated property rather than the normal cash contribution.

Gifts of appreciated property can reduce tax on up to 30% of your adjusted gross income. The ideal assets to contribute are the ones that have gone up in value the most, and if sold, would require the largest capital gains tax. On the other hand, if you own an investment that has lost value since you owned it, you may be able to sell the asset (possibly taking the “loss” as a deduction) and receive a tax deduction on the resulting cash gift.

If you have questions about any of the above opportunities, check with your financial advisor to be sure that this opportunity is right for you. If you are ready to discuss such a donation with us at BHA, please contact Crystal Baxter, Executive Director, at 717.233.6016 or cbaxter@bha-pa.org.

Note: BHA is not engaged in rendering specific legal or tax advice, so we recommend you contact your professional legal or tax advisor when considering this type of gift.