Example: Ralph and Marge invested in a commercial warehouse property partnership as an income-producing asset. After several years of receiving income and seeing the property grow in capital value, they determined they no longer needed the asset.
Their charitable adviser suggested that making an outright gift of the warehouse might allow them to make significant gifts to ministries they love and support. Ralph and Marge transferred their interest in the warehouse to a charitable foundation.
Ralph and Marge received a charitable tax deduction for the full appraised fair market value of the property. The property was sold, and Ralph and Marge instructed the charitable foundation to distribute the net proceeds to two of their favorite ministries who happily received the large cash distributions to further their work. Ralph and Marge enjoyed the satisfaction of excellent tax benefits and knowing they had made a lasting Kingdom impact with a gift of appreciated real estate.
As with all non-cash gifts, tax rules vary by state and you should consult your own tax professionals before making a gift of real estate. If you are seeking to increase your generosity, and if you own real estate – the combination may be just right to accomplish your desires.
