The tax benefits of appreciated real estate are virtually identical to those for gifts of appreciated securities.
First, you avoid capital gain tax on the growth in value. Second, you receive an income tax charitable deduction for the full fair market value of the property contributed. Gifts of appreciated real property such as undeveloped land, commercial property, farms or personal residences may be transferred to the UCLA Foundation. This may be accomplished by deed during a donor’s lifetime, or through his or her will.
As with gifts of cash and appreciated securities, real estate gifts can be made outright, or through an income-producing gift arrangement. It even is possible to make a tax-deductible current gift of your home, continue to live in and enjoy it for your lifetime, and yet still realize an income from your gift!