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Donation of Partial Interest
For a charitable gift to be tax deductible, normally you must contribute your entire interest in the gifted property. But partial interests may be donated, and can include such things as:
- Contribution of a remainder interest in your personal residence or farm.
- Contribution of an undivided portion of your entire interest in the property.
- A qualified conservation contribution or conservation easement.
- Contribution of contract rights, mineral rights, leases, or other property rights.
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Rush River
Salem Township, Pierce County |
The value of a contribution of a remainder interest in your personal residence or farm is determined by applying actuarial tables and calculating the life expectancies of the person or persons who retain life interests. The older you are, the shorter your life expectancy, and therefore the less value you have retained and the higher the value of the gift. |
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A contribution of an undivided portion of your entire interest in the property is also tax deductible. For example, you may wish to spread your charitable gift over a period of years by granting a 50% undivided interest in your property in one year and 50% three years later. This may enable you to take greater advantage of the tax deductions. During the period of co-ownership, you and your charity are classified as tenants-in- common, and you are each responsible for your share of expenses. You are each entitled to your share of any income from the property. |
View of Chippewa River
Pepin County
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