Making a Gift of Real Estate

Benefits:

• You avoid all the capital gains tax you would have paid had you sold the estate outright.
• You receive an income tax deduction for the full market value of the property.
• If the deduction is more than you can use in the year of the gift, you can carry it forward for five additional years and shelter even more income.

How it works: 

1. You tell someone at Canterbury School that you would like to consider a gift of real estate.
2. A representative from Canterbury will discuss the possibility with you. We have a checklist of information the Board requires us to collect about potential gifts of real estate. If, after learning about the property, the gift still appears beneficial to you and us, the representative will work out a time to see the property and to talk with a real estate expert familiar with the market for that property.
3. You will need to secure a timely appraisal on the property. The appraisal must be valid no more than 60 days prior to your transfer but can also be obtained after the transfer so long as it is before you file your tax return and that the value of the property is determined as of the day you gave it to Canterbury.
4. We will send you an acknowledgement and receipt for the gift. You should also secure an IRS Form 8283, signed by both us and the person who appraised your property. We can provide you with a copy of this form for your tax records.
5. You receive an income tax deduction for the full market value (as determined by the appraisal) of the gift. If you cannot use all of it in the year you transferred the property, you can roll it over for up to five additional years. You also avoid all the capital gains tax you would have owned if you sold the property outright. 

Real Estate Checklist

If you would like to learn more about these kinds of gifts of if you would like to see a confidential example designed specifically for you, please call or send an email to mperry@canterburyschool.org.