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Costs of the Appeal Are to Be Borne by the Appellant

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Investing in Water;
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Leading Advisor

Fidelity CharitableSM
Ryan Boland, Director, Complex Asset Group





When does it make sense to donate real estate to charity?

By Ryan Boland
While the donation of appreciated securities—stocks, bonds and mutual funds—is common, relatively few individuals donate real estate to charity. Under specific circumstances, however, such a donation can be mutually advantageous to both the giver
(the owner of the real estate) and the recipient (the charitable organization).
At a most basic level, those circumstances are: (1) when the property in question has significant long-term appreciation, such that the owner would incur a sizable capital gains tax upon selling it, and (2) when the property is relatively easy for the charitable organization to liquidate, with minimal chance for incurring liability or major carrying costs prior to the sale. These conditions are most frequently met by individuals seeking to donate a long-held primary or secondary home. The donation of commercial or industrial real estate is also possible, but brings many other potential concerns, including possible tenant or lease issues and other legal complications.
The ideal scenario might look something like this: A couple who bought their house 25 years ago for $250,000 has seen it appreciate to a current valuation of $2 million. Their mortgage is fully paid off, and their three children

have grown and started

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