Gifts of Real Estate
You may have a personal residence, a vacation home, farmland or even vacant land that you no longer need. Or, you want to give the property but not lose the right to use it or receive income from it. Donating that piece of property can, in the right circumstances, offer many advantages to both Susan G. Komen Northwest NC and you! Not only will you be able to see the difference your gift can make while you are still alive, but donating real estate can be a great tax savings opportunity for you.
If you have a highly appreciated piece of real estate that you have owned for more than a year, giving it to Susan G. Komen Northwest NC can allow you to:
- Take a charitable deduction on your taxes of the fair market value (up to 30% of your adjusted gross income, but you can carry the excess contributions forward on your taxes for up to five subsequent years);
- avoid capital gains taxes on the profit you would have made on the property if you had sold it instead of giving it to charity;
- reduces estate taxes and settlement costs after your death.
If you’re not yet prepared to part with a property’s full value, a bargain sale might be a good idea for you. You sell the property to Susan G. Komen Northwest NC at a discounted price and claim a charitable deduction on the difference between the property’s fair market value and the sale price. If you sell it for what you paid for it or less, you can also avoid capital gains taxes on it.
Gifts of Property while Retaining Income
If you are contemplating a gift of real estate but need income during your life, you can create and give your property to a “Charitable Remainder Trust”, which in return pays income to you or another income beneficiary for life or for a specified term and then distributes the remaining assets to a charity. You enjoy an immediate charitable deduction on your taxes for the value of the charity’s “remainder interest”.
Partial Interest Gifts
If you know you want to leave your property to Susan G. Komen Northwest NC but want to ensure that you can still use or rent the property during your life, you can donate the property subject to a “life estate interest” where you retain the right to live in or enjoy the property until your death. You get the benefit of a “home exclusion” for up to $500,000 if you are married ($250,000 if you are single), and you receive an immediate charitable deduction on your taxes for the value of the “remainder” interest in the property.