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Valuing Charitable Gifts of Real Estate—Big Appraisals Can Lead to Bigger ProblemsValuing Charitable Gifts of Real Estate—Big Appraisals Can Lead to Bigger Problems

Robert F. Sharpe, Jr. and Heath R. Delay highlight appraisal issues that may arise when a client wants to gift real estate to charity.

Robert F. Sharpe, Jr, CEO

November 2, 2020

10 Min Read
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For those who advise clients on the tax and other ramifications of making larger charitable gifts, one area that often assumes great importance is the relationship among the nature of donated assets, their values and the clients’ need for and ability to use tax deductions in light of their adjusted gross income (AGI) and other factors. 

This advice can be relatively straightforward for gifts of cash and cash equivalents or assets, such as publicly traded securities, which have readily determinable fair market values.

On the other hand, when a client is considering a gift of real estate, art, a closely held business interest or other assets that are more difficult to value, a number of tax planning challenges can arise.

IRC Section 170(f)(11...

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About the Author

Robert F. Sharpe, Jr

CEO, Encore

Robert F. Sharpe, Jr. is CEO of Encore in Memphis, Tenn. He is a nationally recognized pioneer, leader and authority in the field of philanthropy. During more than 35 years serving America’s nonprofit community, he has consulted nationally with educational, health, social service, arts and religious organizations and institutions in the planning and implementation of their major, planned gift and endowment development efforts. A graduate of Vanderbilt University and Cornell Law School, he served as a development officer for a liberal arts college prior to practicing law with a major law firm specializing in taxation and estate planning.

Robert is chairman of the philanthropy editorial board of Trusts & Estates magazine and co-author of the National Association of Charitable Gift Planners (CGP) Model Standards of Gift Valuation. He has served on the board of Giving USA and on strategic task forces for the CGP. Among other publications, his remarks have been featured in The Wall Street Journal, The New York Times, Newsweek, Forbes, Smart Money, The Chronicle of Philanthropy and Kiplinger’s.

He is a frequent speaker at gatherings across the country including Planned Giving Councils in New York, Washington, Chicago, and Los Angeles, the National Association of Charitable Gift Planners national conference, the Association of Fundraising Professionals (AFP) National Conference, and the American Bankers Association Wealth Management and Trust Conference.