Transforming Realty to Gift Reality
Discover All of Your Options
Make a Gift TodayLearn more about the many ways to use real estate to support Colorado State University in the FREE guide 7 Ways to Donate Real Estate.View My Guide
Gifts of real estate may be made using trusts, an outright gift, or by will provision. Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence. In most cases, appreciated property that has been held longer than one year is subject to capital gains tax. Gifting your property to Colorado State University may eliminate some or all of your capital gains tax , as well as providing a significant charitable deduction. Tax on the growth in value of an asset—such as real estate or stock—since its original purchase. Additionally, the hassle of maintenance, property taxes, insurance, and selling the property would be alleviated.
To ensure that CSU will be able to receive and effectively utilize your property, contact the Office of Gift Planning for more information at (970) 491-3414.
An Example of
How it Works
Janet purchased her home years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she's beginning to find home ownership more and more of a hassle. At this stage of her life, Janet has decided to move to a 55+ condominium development, where all exterior maintenance is provided and she doesn't have to worry about security issues. Janet sees this as an opportunity to give her existing house to a charity that's important to her while realizing valuable tax benefits.
Janet qualifies for a federal income tax charitable deduction of $250,000, which is for her home's fair market value today. She is able to claim 30 percent of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Janet is happy in her new condo and loves knowing that the gift of her house will make a big difference supporting our mission.
Ways to Give Real Estate
You can give real estate to CSU in the following ways:
When you make a gift today of real estate you have owned longer than one year, you obtain a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation. Furthermore, the transfer is not subject to the gift tax, and the gift reduces your future taxable estate.
A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for CSU continues after your lifetime and that your estate will benefit from a federal estate tax charitable deduction.
Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to CSU but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though we would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home's value.
Want to sell us your property for less than the fair market value? A "bargain sale" may be the answer. When you make a bargain sale, you sell your property to our organization for less than what it's worth. The difference between the actual value and the sale price is considered a gift to us. A bargain sale can be an effective way to dispose of property that has increased in value, and it is the only gift vehicle that can give you a lump sum of cash and a charitable deduction at the same time.
Not Sure How to Begin Planning?Download our FREE Personal Estate Planning Kit
- Complete the Statement of Intent form to let us know of your gift intentions and to ensure peace of mind that your gift will have the desired impact at CSU.
- Contact the Office of Gift Planning at firstname.lastname@example.org or (970) 491-3414 for additional information.
- Seek the advice of your financial or legal advisor.
- When including CSU in your plans, please use our legal name and federal tax ID.
Legal Name: Colorado State University Foundation
Location: PO Box 1870, Fort Collins, CO 80522
Federal Tax ID Number: 23-7098397
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.