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By making a gift of real estate to The Jewish Community Foundation,
your client can avoid capital gains or estate taxes while
making a significant contribution.
There are many ways to make a real estate gift. Your client
can donate real estate outright, or use it to establish a
charitable remainder annuity trust
or charitable remainder unitrust.
Donors can even reserve the right to live in their homes
for life. Alternatively, donors can convey a fractional interest
in a second residence or vacation home to the Foundation,
which allows use of the property for part of the year.
Tax benefits
- Outright gifts: donors receive a current income
tax charitable deduction and avoid capital gains taxes.
- Charitable remainder trusts: donors can avoid capital
gains tax on any appreciation, take a current income tax
charitable deduction based on the present value of Foundation's
remainder interest, and receive annual income from the charitable
trust.
- Lifetime transfers: by transfering the deed to
a primary or secondary residence to the Foundation while
reserving the right to live in it, donors can avoid any
tax on the value of the property (including the capital
gain), generate a current income tax charitable deduction
and remove the property from his or her estate, thereby
reducing estate taxes. If, in the future, the donor decides
to move, he or she can relinquish the life estate to the
Foundation and obtain an additional charitable income tax
deduction.
- Fractional interest: If donating a fractional interest
in a vacation home to the Foundation, donors can take an
income tax charitable deduction equal to the contributed
fractional interest of the fair market value of the property,
while retaining the right to use it for part of the year.
At a glance
- Can be given outright, or used to create a charitable
trust
- Offers benefits in capital gains, income and/or estate
taxes
- May be structured in a variety of innovative ways, including
allowing lifetime use of the property
- Creates a significant gift to the community
More...
>>
Guidelines for the acceptance of real property
>>
Get a complete legal and tax overview of real estate gifts
in GiftLaw Pro under "Chapter 4—Specific Property
Gifts"
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