Commercial Real Estate is a gift you can make to the Marriott School. In your real estate portfolio, you may have commercial properties from which you have received significant rental income and depreciation benefits. These commercial properties may now present undesirable challenges, including the need for time-consuming management, an obligation to pay increased maintenance costs, and the prospect of substantial capital gains taxes if the property were sold. By giving your commercial real estate to the Marriott School, you are relieved of management responsibilities, avoid capital gains taxes, reduce your estate tax, and fulfill your charitable and family objectives.
The typical donor:
- Holds title to the commercial real estate
- Owns commercial real estate that is without debt
- Desires to reduce management responsibilities
- Has taken advantage of available depreciation
Gifts features and benefits:
- Immediate income tax deduction
- Avoidance of capital gains taxes
- Deduction based on fair market value; or present value of remainder interest if placed in a Charitable Remainder Unitrust
- Gift can be timed to take advantage of market value
How Do I Make a Gift of Commercial Real Estate?
A gift of commercial property to the Marriott School must be reviewed and evaluated by the Church Real Estate Division. The Marriott School can assist you with this process.
How Do I Make a Gift of Commercial Real Estate Using Gift Planning Tools?
Commercial property can also be given by funding a Charitable Remainder Unitrust that provides you income for life and numerous tax benefits. In larger estates, commercial property can be used in conjunction with a Charitable Lead Trust to provide annual income to the Church or one of its institutions for a period of years, following which you transfer tax-free growth in the trust to your heirs. Commercial property can also be given through your Will or Revocable Trust.
Other Facts You Should Know about a Gift of Commercial Real Estate
Any tangible personal property associated with a commercial real estate gift may involve accelerated depreciation and the potential for unrelated business taxable income (UBTI). You should consult your professional advisors concerning this possibility. LDS Foundation professionals will be happy to discuss this and other issues related to your gift of commercial real estate with you and your team of professional advisors.
Tools Used with This Asset (Commercial Real Estate)
- Charitable Lead Trust (CLT)
- Charitable Remainder Unitrust (CRUT)
- Donor Advised Fund (DAF)
- Private Foundation
- Revocable Living Trust
- Support Organization
- Testamentary Trust