Various forms of real estate, including primary residences,
vacation homes, farms, undeveloped land, and commercial property,
can be donated to the OEHF. You can make
an outright gift or retain an interest in the property.
If you have owned the property for longer than one year, you
are entitled to a charitable deduction equal to the full fair
market value of the property. Donating the property to the
OEHF also allows you to avoid paying capital
gains tax on the appreciation.
Gifts That Allow You To Still Use The Property
If you would like to help the OEHF and enjoy
the tax advantages of a gift, but prefer to continue living
in your home, a retained life estate makes this possible.
By giving the OEHF a remainder interest in
your property, you, or a person you designate, is permitted
lifetime use of your home. Upon the death of the designated
person, ownership of the property transfers to the Foundation.
A charitable deduction is allowed in the year the remainder
interest is established, and because the property is transferred
to the OEHF, estate taxes are avoided on
the value of the remainder interest.
Tangible Personal Property
A gift of tangible personal property to the OEHF entitles
you to an immediate tax deduction. Tangible personal property
includes any property, other than land or buildings, that
can be seen or touched, such as artwork or books. The amount
of the deduction will vary depending upon whether or not your
gift is related to the exempt purposes of the OEHF.
Gifts of property put to an unrelated use by the OEHF
entitle the donor to a deduction equal to the lesser of the
property’s cost basis or its full fair market value.
The sale of donated property in order to use the proceeds
is the most common unrelated use.
For example: if you donate jewelry
currently worth $1500, but for which you paid $500, and the
intention is that the OEHF will sell the
jewelry and keep the proceeds, you are only entitled to a
deduction of your cost basis, $500.
Some gifts of property can be used by the OEHF
to further our mission. For example, if you donate a collection
of books to be used by the Foundation, you are entitled to
a deduction of the full fair market value of the books. If,
however, you are the creator of the donated property, you
are only entitled to a deduction of your cost basis in creating