REAL ESTATE

Various forms of real estate, including primary residences, vacation homes, farms, undeveloped land, and commercial property, can be donated to Lemon Bay Conservancy. 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 Conservancy also allows you to avoid paying capital gains tax on the appreciation.

Gifts That Allow You To Still Use The Property

Perhaps you would like to help the Conservancy and enjoy the tax advantages of a gift, but you prefer to continue living in your home. A retained life estate makes this possible.

By giving the Conservancy 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 Conservancy.

A charitable deduction is allowed in the year the remainder interest is established, and because the property is transferred to the Conservancy, estate taxes are avoided.

TANGIBLE PERSONAL PROPERTY

A gift of tangible personal property to Lemon Bay Conservancy 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 Conservancy.

Unrelated Use

Gifts of property put to an unrelated use by Lemon Bay Conservancy 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 Conservancy 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 Lemon Bay Conservancy to further our mission. For example, if you donate a collection of books to be used by the Conservancy, 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.

If you would like further information about making a gift of stock, contact us at 941-830-8922 or lbconservancy@comcast.net.

This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here.