Individuals may consider making a gift of real estate to Wayne State University. Tax considerations for outright gifts of real estate include:
- If held for more than one year, real estate gifts enable the donor to claim a charitable income tax deduction for the property’s fair market value.
- Capital gains taxes are avoided when outright gifts of real estate are designated to qualifying nonprofits, such as Wayne State.
Real estate also can be used to fund a charitable remainder trust, or subject to a life estate interest. The life estate arrangement allows the donor to make an income tax-deductible gift of real estate while reserving the right to use or live on the property for the balance of his or her life. Upon the donor’s death or abandonment of the property, the title passes to Wayne State and removes the value of the asset from the donor’s taxable estate.
All gifts of real estate will be reviewed carefully by Wayne State University prior to acceptance. Environmental contaminants, building structural matters and resale issues must be considered closely. Additionally, prior to acceptance, the property must be evaluated by a qualified appraiser.
For more information about gifts of real estate, please contact one of Wayne State University's experienced planned giving professionals.
Rob R. MacGregor, JD, CFP®
Senior Director of Planned Gifts
Carine J. Hails, JD, CTFA
Senior Planned Giving Officer