Are you thinking of selling land or a building? Beware of capital gains tax! If you sell your primary residence, you can exclude up to $250, 000 ($500,000 if you’re married) of the gain. But this tax break doesn’t apply to other types of real estate, so you may have a better alternative.
A charitable contribution of real estate-whether it’s your personal residence, a vacation home, a farm, commercial real estate, or vacant land-will give you numerous advantages.
When you give your home or other real estate to us, you create an enduring testimonial of your interest in our mission. And what’s more, your personal satisfaction is complemented by valuable tax benefits.
- Income tax charitable deduction for the full fair market value
- Avoidance of tax on the property’s appreciation
- No hassle from trying to sell the property
- No gift tax, plus a reduction of your taxable estate
Retained Life Estate
Let’s assume you like the tax advantages that a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. Did you realize you can give us your home, even though you continue living there?
It’s true. It’s called a retained life estate. A gift of your home, farm, vacation home, or condominium, even with stipulations about occupancy, results in a charitable deduction on your income tax. The retained life estate also provides you with a way to let someone other than you or your spouse have life occupancy of your home without the associated estate tax payments.
- Lifetime use of the residence for you and/or another person
- Income tax savings through charitable deduction
- Estate tax savings even when you give a non-spouse lifetime use
- Ability to gift only partial interest in property and receive tax advantages