Real estate
Real estate: It’s about more than location, location, location.
It’s also about making a tax-advantaged gift to MIT.
A gift of real estate may consist of a full or partial interest in
almost any kind of property, including a residence, vacation home, farm,
ranch, condominium, cooperative apartment, or commercial property. Real
estate gifts may be made outright to MIT, or used to establish a planned
gift.
Tax benefits: Selling substantially appreciated real estate often
leads to high capital gains taxes and other costs that reduce the proceeds
of the sale. With an outright gift of real estate to MIT, you are entitled
to an income tax deduction based on the full appraised value of the
property. (A copy of a qualified appraisal of your gift of real estate
must be submitted with your tax return for the year you make the gift.)
Please feel free to contact
us about donating real estate
assets to MIT.
Case study: A gift of commercial real estate
A graduate of MIT’s School of Architecture and Planning, Genevieve
Meyers is president of a successful architectural firm in Georgia. She
owns a piece of unencumbered and unimproved commercial property in Atlanta
for which she has received verbal offers from real estate developers.
Although contemplating a sale, she has made no commitment yet.
She decides
that, instead of selling the property, she will use it to fund a charitable
remainder unitrust with MIT, and will designate her gift to support the
School of Architecture and Planning. A deed of gift and indenture of
trust are drawn, signed, and recorded, and the property is used to fund
Meyers’ unitrust.
With this gift of real estate, Meyers has—
- sold the property without incurring a capital gains tax,
- arranged to receive income for life from the full proceeds of the
sale,
- received an immediate income tax deduction for the value of MIT’s
remainder interest in the appraised value of the property, and
- supported the School of Architecture and Planning with a significant
gift.
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