Gifts of Real Estate

Your residence, farm, vacation home, and commercial or other real estate that you have owned for more than 12 months may be used to make a major gift to Prescott College. An entire piece of property or an undivided fraction thereof can be donated. A gift of real estate enables you to realize a tax deduction, avoid capital gains liability, and, if desired, retain lifetime occupancy for you, your spouse, and possibly an additional person. Lifetime occupancy is limited to noncommercial property and farms. Prescott College may continue to use the real estate. If the College is unable to use the property, it may be sold and the proceeds added to the endowment or used for any purpose designated by the donor. Your gift of real estate must be appraised by an independent, qualified appraiser to determine the value of your gift. Prescott College may choose to have an environmental review of the property before real estate is accepted. Bargain sale: In some instances, you may choose to sell property to Prescott College for less than its fair market value. The difference between the fair market value and the actual sales price is deductible as a charitable gift. If the sale involves capital gain property, the proportion of gain allocated to the selling price is recognized by the donor.

Your attorney or tax accountant can advise you of the full benefits of supporting Prescott College with a gift of real estate. If you wish, the Office of Institutional Advancement would be pleased to give you the name of Prescott College Alumni who work as attorneys and/or accountants who can advise you about the benefits of supporting Prescott College.