If Penn sells the property within two years of the date of the gift, it must submit IRS Form 8282 reporting the sale price. A significant discrepancy may cause increased IRS scrutiny. She owns undeveloped land that she has been leasing to farmers for cattle grazing. She recently received an offer for her land from real estate developers and is contemplating a sale. She decides instead to give the land to Penn and let the University sell it and use the proceeds to endow the medical research fund.
Title is transferred via a deed at settlement.
Miss Walter must submit a copy of the appraisal with her tax return as well as Form 8283. Upon the sale of the land, Penn must submit a Form 8282 informing the IRS of the sale price of the land. Avoided significant capital gains taxes. Avoided future real estate taxes and expenses. The Curator reviews these items for acceptance.