Real estate

This giving option can help you: give a larger gift, avoid capital gains taxes
This giving option can help EMM: now
This option can gain tax benefits: current year, future years

What is real estate?

Real estate is property such as land and buildings. Donating real estate to Eastern Mennonite Missions can offer tax benefits to you this year or even over a several year period.

When you donate real estate to Eastern Mennonite Missions, you may claim an itemized deduction on your taxes for the fair market value of the real estate, up to 50% of your adjusted gross income in the year of the gift. You may roll over any excess amount into the next tax year, for up to five additional tax years if needed. In addition, neither you as the donor nor Eastern Mennonite Missions will need to pay any capital gains tax on the gift.

Such gifts require an appraisal and mutual legal counsel. Bargain sales, in which you sell property to Eastern Mennonite Missions below market price, are another option; a bargain sale may provide additional tax benefits for the portion of sale price that is below fair market value.

You may also use real estate to fund other life income items, such as some types of trusts.

For more information, contact Joe Hollinger.