Gifts of real estate

A gift of real estate allows a donor to give a major gift to North Star Fund while avoiding all the capital gains tax on the property. Many people also find the ease of contributing real estate and the relief from the expenses and responsibilities of managing or marketing real estate to be important benefits as well. Additionally, donors receive an income tax deduction for the full market value of the property.
  • You avoid all the capital gains tax you would have paid had you sold the real 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 receive the deduction in future years.
  • You avoid the hassles of managing real estate and the expenses of marketing and selling real estate as well.
  • Because real estate is often quite valuable, you can make a significant impact on the programs at North Star Fund.

Example:
Sue owns a beach condo on Fire Island that she purchased years ago for $100,000, which is now valued at $500,000. She used to visit regularly but now finds the condo has become a burden. She can give the condo to North Star Fund, receive a tax deduction for the entire $500,000, avoid paying tax on the $400,000 capital gain, and relieve herself of the expense of maintaining the property.

  1. Please contact Elz Cuya Jones and tell her that you would like to consider a gift of real estate to North Star Fund, giving the location, value, and nature of the property.
  2. A representative from North Star Fund will discuss the gift with you and then walk you through the process.
  3. North Star Fund has a checklist of information about potential gifts of real estate; this will form the basis for the conversation about the gift.

If you would like to learn more about this kind of gift or if you would like to see a confidential example designed specifically for you, please call 212-620-9110 or send an email to Kofo Anifalaje, Development Officer at Kofo@northstarfund.org.