In a state like South Dakota, a valuable asset that can provide a significant benefit to the SD Historical Society Foundation is land or property. The general policy of the Foundation is to sell the land or property and use the proceeds to benefit the Historical Society mission. While the Foundation does not generally hold land as an asset, it can be done if there is a specific reason and the land / property provides an income to the Foundation. This would be a joint decision made by the donor and the Foundation.
Gifts of land / property should be coordinated with the Foundation staff prior to the gift or bequest to make sure any specific needs are coordinated. Certain factors of the donation may need to be validated prior to the Foundation being able to accept the donation. A consideration may include a reserved lifetime use clause. The donation is as simple as executing or signing a deed transferring ownership to the Foundation. Your gift will generally be based on the property's fair market value, which would need to be established by an independent appraisal. Please contact us for a consultation.
1. The donor will receive an income tax deduction for the current fair market value of the land / property. There may be limits based on the donor's annual income and may result in some carry forward.
2. The donor avoids capital gains taxes on the donated land / property.
3. The donor can assist in determining the long-term intent for the land before the gift is made.
4. The donors can remove the land / property from the estate and reduce future estate taxes.
5. The donor provides a valuable benefit to the SD Historical Society Foundation.
The tax effects of any actual donation of land / property should be based on a consultation with a tax professional.