FAQs about donating real estate

Description

Abstract: Making charitable donations during life or at death removes assets from one’s estate and thus reduces any potential estate tax liability. But those who would like to make a significant charitable contribution, yet who are “property rich and cash poor,” might feel that they don’t have a good way to do so. But there are ways. This article answers some frequently asked questions about contributions of real estate: What are the tax benefits? Does donating property still make sense in this dismal real estate market? Can one donate a portion of the property? Are there limits on the charitable deduction? And what tax traps may be lurking? A sidebar discusses the benefits of donating conservation easements.