Gifts of Real Estate

A gift of real estate can be an attractive way to support the National Gallery of Art and to realize tax and income benefits at the same time. The Gallery will sell the donated property and use the proceeds to support its mission, while the donor receives valuable tax benefits. Income from a rental property can also be donated to the Gallery. By making a gift of real estate, a donor may be able to reduce significantly the amount of income, capital gain, and estate taxes he or she otherwise would have to pay.

A primary residence, vacation home, or farm can be given to the Gallery:

• outright
• through a bequest
• to create a trust that would pay lifetime income
• with the stipulation that the donor retains the property for life

Example of a Gift of Real Estate:

Mrs. Kelly, a volunteer docent at the National Gallery, wants to make a significant gift to the Gallery. However, she cannot afford an outright gift at this time.

Upon her lawyer’s suggestion, Mrs. Kelly decides to pledge a remainder interest in her personal residence to the Gallery. She will retain the right to use the property during her lifetime and, at the time of her pledge, will receive an immediate tax deduction based on her age and the fair market value of the property. There will be no capital gains tax on the sale of the property upon her death, and the value of her estate will be reduced, thereby lowering any estate taxes due.

We invite you to contact us with questions or comments about planned giving; we would welcome the opportunity to discuss these options further with you. We highly recommend that you also speak to a financial adviser.