Real Estate

Making a Gift of Your Real Estate

Giving real estate to MidAmerica can be a great way to make a charitable gift and avoid capital gains taxes on property that has significantly appreciated in value. You may choose to make an outright gift of real estate to MidAmerica or establish a lifetime income-producing planned gift like a charitable remainder trust.

MidAmerica Nazarene University Foundation can assist donors with gifts of improved, unimproved, commercial and residential real estate. Gifts of appreciated real estate can be especially attractive from a tax standpoint since you receive a current charitable income tax deduction for the fair market value of the real estate AND you avoid the potential capital gains taxes that would be incurred upon the sale of the property.

In order to donate the real estate, you must obtain a “qualified appraisal” which becomes the amount of the permitted charitable income tax deduction. The real estate gift is not complete until the signed deed is delivered to MidAmerica Nazarene University Foundation. This delivery requirement becomes more important towards the end of the year when timing is more critical for the gift to be counted in the current year.

If the value of your property is more than you wish to give (or deduct) in any given year, you may make a gift of only a part of your interest in it. As an example, if you own farm land but do not wish to contribute all of it, you may donate a partial interest.

A retained life estate is a gift option that creates an immediate benefit but allows you to use your home or farm for the rest of your life, a term of years, or a combination of the two.  Gifts made in this manner qualify for a federal income tax deduction. Learn more

Before you begin the process of selling your real estate, contact a MidAmerica Nazarene University Foundation representative by calling (913) 971-3607 (Toll free 1-877-496-8668) or by e-mail ({ml0}) to discuss your options. The University reviews each potential gift of real estate. We will help you with the necessary paperwork so that you and MidAmerica receive the full benefit of your gift.

This information is for educational purposes only and should not be considered legal, accounting, or other professional advice. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.