Real estate

Types of Real Estate Gifts:

Hospice of the Northwest Foundation accepts various types of real estate including residential homes, vacation properties, commercial buildings, undeveloped land, and farms.
You can donate your entire interest in real estate or a partial interest, such as through a retained life estate arrangement.
Real estate can be donated outright, through a bequest in your will, or used to fund a charitable remainder trust or charitable lead trust.
Properties may be accepted with or without a mortgage, though encumbered properties have different tax implications.

Evaluation and Acceptance Process:

All potential real estate gifts must go through our review and approval process before acceptance.
We conduct a preliminary evaluation that may include a site visit, market analysis, environmental assessment, and review of any existing leases or restrictions.
Potential environmental issues, marketability concerns, or carrying costs may affect our ability to accept a property.
The foundation generally sells donated properties rather than holding them, unless the property has specific strategic value to our mission.
The acceptance process typically takes 4-8 weeks, depending on the property’s complexity.

Tax Considerations:

You may be eligible for an income tax deduction based on the property’s fair market value if you’ve owned it for more than one year.
For properties held for one year or less, your deduction is typically limited to the lesser of fair market value or your cost basis.
A qualified appraisal from an independent appraiser is required for real estate donations valued above $5,000.
This appraisal must be conducted no earlier than 60 days before the donation and no later than the due date for your tax return.
If we sell the property within three years of your donation, we must report the sale price to the IRS, which may affect your deduction if the selling price is substantially different from the appraised value.
You can potentially avoid capital gains tax on the appreciation of the property when you donate it directly to our foundation.

Donor Responsibilities:

You are responsible for obtaining and paying for a qualified appraisal.
You must complete IRS Form 8283 (Noncash Charitable Contributions) for donations exceeding $5,000.
Property taxes, insurance, maintenance costs, and utilities remain your responsibility until the transfer of ownership is complete.
For properties valued at $500,000 or more, the complete appraisal report must be submitted with your tax return.

Getting Started:

We recommend consulting with your tax advisor and real estate professional before initiating a real estate donation.
Hospice of the Northwest Foundation can provide general information but cannot offer legal or tax advice specific to your situation.
Early communication is key—please contact us well in advance of your desired donation date, especially for year-end giving.

This information is provided for educational purposes only and is not intended as legal, tax, or financial advice. Please consult with qualified professional advisors regarding all financial, tax, and legal matters.