Part Gift and Part Sale

• Kevin: "Over the years, that lot increased in value. We paid about $40,000 for the lakeside property, and it's now worth nearly $500,000."
• Susan: "The lot had appreciated significantly, and with the children out of the house, we were thinking of selling it. But we wanted to avoid paying a large amount in taxes. That's when we started considering making a gift of 25% of the property to Utah Valley University (UVU), our favorite nonprofit."
• Kevin: "I happened to be talking to a CPA at a community luncheon. He mentioned that we could probably give about twice as much with almost the same cost if we gave 25% of the property before the sale, rather than writing a check afterward."

After consulting their tax advisor, Susan and Kevin discovered that by donating a 25% interest in the property to UVU prior to the sale, they would receive two key benefits:

• An income tax deduction for the value of the gift
• Avoidance of capital gains tax on the portion of the property donated to UVU

• Susan: "That's exactly what we decided to do. By giving UVU a 25% interest in the property before the sale, we avoided capital gains tax on that portion. The deduction also offset a large part of the tax on the $375,000 we received when the property sold. We're very pleased with the 'double benefit', and UVU received $125,000, a truly meaningful gift."

What is a part gift and part sale?

A part gift and part sale is a smart way to support Utah Valley University while managing taxes on appreciated assets. You donate a portion of the asset before selling it, which allows you to receive a charitable deduction and reduce capital gains tax on the sale portion.

Is a part gift and part sale right for you?

A part gift and part sale of an appreciated asset can be an excellent way to make a significant gift to Utah Valley University (UVU) while enjoying meaningful tax savings. If you'd like to learn more about how this strategy could work for you, please contact UVU's gift planning office. We'd be happy to answer your questions, provide helpful resources, and encourage you to discuss the opportunity with your own financial or tax advisor to determine what's best for your situation.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to create a printable illustration of your benefits by using the calculator on this page.