Real Estate or Other Property

 
   
 

Real Estate

Various forms of real estate, including primary residences, vacation homes, farms, undeveloped land, and commercial property, can be donated to the OEHF. You can make an outright gift or retain an interest in the property.

Outright Gifts
If you have owned the property for longer than one year, you are entitled to a charitable deduction equal to the full fair market value of the property. Donating the property to the OEHF also allows you to avoid paying capital gains tax on the appreciation.

Gifts That Allow You To Still Use The Property
If you would like to help the OEHF and enjoy the tax advantages of a gift, but prefer to continue living in your home, a retained life estate makes this possible. By giving the OEHF a remainder interest in your property, you, or a person you designate, is permitted lifetime use of your home. Upon the death of the designated person, ownership of the property transfers to the Foundation. A charitable deduction is allowed in the year the remainder interest is established, and because the property is transferred to the OEHF, estate taxes are avoided on the value of the remainder interest.

Tangible Personal Property

A gift of tangible personal property to the OEHF entitles you to an immediate tax deduction. Tangible personal property includes any property, other than land or buildings, that can be seen or touched, such as artwork or books. The amount of the deduction will vary depending upon whether or not your gift is related to the exempt purposes of the OEHF.

Unrelated Use
Gifts of property put to an unrelated use by the OEHF entitle the donor to a deduction equal to the lesser of the property’s cost basis or its full fair market value. The sale of donated property in order to use the proceeds is the most common unrelated use.

For example: if you donate jewelry currently worth $1500, but for which you paid $500, and the intention is that the OEHF will sell the jewelry and keep the proceeds, you are only entitled to a deduction of your cost basis, $500.

Related Use
Some gifts of property can be used by the OEHF to further our mission. For example, if you donate a collection of books to be used by the Foundation, you are entitled to a deduction of the full fair market value of the books. If, however, you are the creator of the donated property, you are only entitled to a deduction of your cost basis in creating the property.