Selling a home, farm or second residence can be an emotional decision and may create a huge tax bill if the property has appreciated in value. If you want to do something more with your property, there are a number of options worth considering. Charitable planning techniques can help you sell your property in a tax-efficient manner and support the causes that mean the most to you. Here are a few options you may want to consider that can benefit both you and the causes you support.
- Charitable Remainder Unitrust - With this plan you transfer your property to a trust that sells it tax-free and reinvests to produce income. You can receive income from the trust for life or up to 20 years. You receive a charitable income tax deduction based on a qualified appraisal of your real estate.
- Sale and Unitrust - Here you transfer a portion of the property to a trust and then the property is sold. You receive some cash proceeds from the sale. The proceeds in the trust are invested to pay you income for life. You receive a charitable income tax deduction based on a qualified appraisal of your real estate.
- Bargain Sale - You sell the property to a charity at a discounted price. You receive cash immediately from the sale based on the agreed upon price. You receive an income tax deduction based on the difference between the sale price and fair market value.
- Charitable Life Estate - You transfer (by deed) your personal residence or farm to our organization. You retain the right (in the deed) to remain living in the property for the rest of your life. You receive an income tax deduction based on your age and the value of the property.
While these are the most common charitable strategies involving real estate, there are some variations to these plans. This material is presented for informative purposes only and should not be construed as legal, tax, or financial advice. When considering gift planning strategies and you should always consult with your own legal, tax, or financial advisors.
For more information on how to make a gift of property, as well as other ideas on how to optimize your charitable contributions, visit the planned giving section of Trinity Health Foundation’s website. The materials on the site can be used by individuals who are interested in examining various resources, tools and giving options in the privacy of their own home. The website provides explanations on how to provide for the people and causes you care about.
The planned giving website includes valuable personal, financial and estate planning resources. Articles are updated weekly on topics such as The Latest Finance News, Tips for Savvy Living, and Reports from Washington.
There are two ways to access the information:
– go to Trinity Health Foundation’s website, foundation.trinityhealth.org, click on the Donate to the Foundation section, then select Planned Giving from the menu items.
– go directly to the planned giving portion of the website using this URL - https://trinityhealthnd.giftlegacy.com/