Gifts may be made of a personal residence, a vacation home, a commercial property or undeveloped land. Such a gift will entitle you to a federal income tax charitable deduction equal to the fair market value of the property on the date of your gift, provided you have owned the property for more than one year. Capital gains taxes are also avoided by giving real estate.
There are Two Ways to Contribute Real Estate:
Outright: You deed the property directly to the Urban Homesteading Assistance Board. One hundred percent of the property's appraised market value is income tax deductible.
Retained Life Tenancy: If you own a primary residence, a second home, or a farm that you do not wish to dispose of in your estate, but wish to continue using, then you may make a gift of the remaining interest in that property. This method of giving:
- allows you to remain living in your home for your lifetime.
- generates a current income tax charitable deduction.
- causes the property to pass automatically at your death to the Urban Homesteading Assistance Board.
Your plan administrator may require the following information: the Homesteading Assistance (U-hab), Inc. is a "public foundation," incorporated in the State of New York on November 30, 1978, and is classified as tax-exempt under Internal Revenue Code 501(c)3. The tax identification number for the Urban Homesteading Assistance Board is 13-2902798.
Before making a donation to the Urban Homesteading Assistance Board, we recommend that you consult your advisor or attorney for full advice on the effect of your gift.