Donate With Confidence
The benefits of a gift of real estate
There are several ways you can donate real estate. Each method presents distinct advantages, depending on your circumstances and goals. By giving property to Nevada SPCA, you can avoid or reduce the capital gains tax you would otherwise pay on sale, you may be able to take a substantial income tax deduction, you may choose to receive income for life, and you will have the satisfaction of providing significant support to the Nevada SPCA.
A few things to know before making a gift of real estate:
- In general, it is Nevada SPCA’s policy to sell gift property rather than maintain and manage it.
- Before accepting any gift of real estate, a Nevada SPCA representative must inspect your property to determine whether it can be sold within a reasonable amount of time and to ensure that there are no significant liabilities associated with it.
- If you intend to claim a charitable income tax deduction for your gift of real property, the IRS will require you to obtain an independent, qualified appraisal to determine the property’s fair market value.
- Due to tax issues, debt-encumbered property is usually not appropriate for a charitable gift of real estate.
Options for Donating
There are five primary ways to give a gift of real estate to Nevada SPCA. These options are fully described in full below:
Give your residence, rental/commercial property, or undeveloped land outright to Nevada
Once Nevada SPCA has agreed to accept a gift of real estate, you may give a partial or full interest in your property by simply executing and recording a deed naming the Nevada SPCA as the new owner.
Give property to establish a charitable remainder trust
By establishing a charitable remainder trust (CRT), you can provide for a future gift to Nevada SPCA while receiving a tax deduction and a long-term income stream. When you give real property to establish a charitable remainder trust, the trustee, which could be Nevada SPCA, can sell the property without paying capital gains tax. The full proceeds from the sale can then be invested by the trustee and used to pay you and/or your beneficiaries an income for life or for a term of years. After your lifetime or when the trust term ends, the remaining funds will pass to the Nevada SPCA to be used for the purpose(s) you designate. You may also be able to use a partial interest in the real property to fund the trust, and retain the cash proceeds from the sale of the remaining interest in the property.
Make a gift of a remainder interest in your home
A gift of a remainder interest in your home may be right for you if you wish to continue to live in your home for your lifetime. With this arrangement (sometimes called a retained life estate), you transfer a remainder interest to Nevada SPCA, which entitles you to a significant income tax deduction. You also enter into an agreement with Nevada SPCA that you will continue to perform all obligations of ownership, such as paying taxes and insurance. When the property comes to Nevada SPCA, without probate or other administrative procedures, the Nevada SPCA will use the proceeds of the sale as you have instructed.
Sell your property to Nevada SPCA at a discounted price, also known as a bargain sale
In some limited circumstances, Nevada SPCA will purchase property at a discounted price—typically not more than 50 percent of its fair market value. The difference between the price Nevada SPCA pays and the fair market value (as determined by appraisal) constitutes the gift to Nevada SPCA, which entitles you to an income tax deduction. This also provides you with cash from the purchase by Nevada SPCA.
Leave property to Nevada SPCA through a bequest
You can make a gift of real estate through a provision in your will or revocable trust agreement. Once Nevada SPCA receives the property, it is generally sold and the proceeds are used according to the purposes outlined in the bequest documents.
