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Although real estate is usually the most significant asset an individual owns, it is often overlooked as a vehicle for giving. The process may be a bit complicated, but donating real estate is an extremely tax-smart way to contribute to your favorite charity.

If you have owned a property for at least one year, have a clear title and have no environmental issues, your appreciated real estate may be donated to a qualified 501(c)3 nonprofit. Whether it be a family home, farmland or other real estate investment, you receive a deduction equal to the fair market value of the property, and you will avoid paying any capital gains tax as well. The charity receives the full value of your gift, paying no taxes at all. Any real estate donation valued at more than $5,000 will need a qualified appraisal to secure your deduction, and all the standard annual deduction limits still apply.