Gifts of farms, personal residences, commercial properties, and unimproved land may provide exceptional benefits to you and to the UC Davis M.I.N.D. Institute. If you give long-held real estate that has appreciated in value since acquisition, you are entitled to a federal income tax deduction for the fair market value of the real estate at the time you transfer title. As with appreciated securities, you may only take a deduction up to 30 percent of your adjusted gross income with a five-year carry-over of any unused amount. You do not pay capital gains on such a transfer.

In addition to giving real estate outright or by will or revocable trust, you can also donate real estate through a charitable remainder trust or a life estate. A life estate enables you to donate your personal residence (including a second home or vacation home) while retaining the right for yourself (and your spouse or other beneficiary) to live there for the rest of your life.

When you make this gift, you are entitled to an income tax deduction for the present value of the charitable gift. You gain the income tax deduction without an expenditure of cash or a reduction of income and avoid capital gains tax on the property's appreciation. Your estate is also entitled to a charitable deduction.

As with all aspects of estate and tax matters, you should seek qualified legal, tax, and financial advice in developing your plan. Because gifts of real estate can become complicated, please contact the cancer center development office before you begin planning to ensure that the gift is feasible and that it can be used for the purposes you intend.

If you have questions or need additional information, please contact Terri Contenti at (916) 703-0289 or terri.contenti@ucdmc.ucdavis.edu. .

UC Davis Health System is recognized as a tax-exempt, 501(c) (3) public charity by the Internal Revenue Service. Your gift to the UC Davis M.I.N.D. Institute qualifies as a charitable deduction for federal tax purposes as permitted by law.