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A gift of real estate can be an attractive way to make a substantial donation to Wentworth and simultaneously benefit you as well. Through your gift, you may be able to significantly reduce the amount of your capital gains taxes, estate taxes, and income taxes. In addition, you may be able to earn an income from your gift.
There are many types of real estate you can give, including your personal residence, vacation home, commercial property, building lot, undeveloped land, or farm/ranch. You can donate either all or a percentage of the property.
We are happy to discuss with you any of the various options for giving real estate. Please feel free to contact us for more information.
Giving an outright gift of real estate
An outright gift of real estate would give you an income tax deduction for the appraised value of the home, and it would allow you to avoid capital gains tax on highly appreciated property.
Giving your home now, but continuing to live there for the rest of your life
It is also possible to give your home to Wentworth now, yet still live there for the rest of your life. This allows you to to receive certain tax advantages and to make a valuable donation to the Institute right now — and simultaneously allows you to continue living in your home for the rest of your life.
Receiving income through real estate gifts
If you want to receive income from your gift, you may want to donate real estate to a Charitable Remainder Trust.
An illustration
Sam has a residence which he places into a Charitable Remainder Trust. The residence is sold by the trustee, and reinvested in a diverse portfolio of liquid assets.
Now Sam can claim a current charitable income tax deduction for a portion of the home’s value. In addition, after the property is sold, Sam can receive a lifetime income from the Trust at a fixed or variable rate (depending on the Trust).
After Sam's death, the remainder of the Trust will benefit Wentworth in the area of Sam's choosing: athletics. |
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Another option which would give you income would be to sell the real estate to Wentworth at a "bargain" price, which is substantially lower than the appraised market value. This transaction would be both a charitable donation and a sale. You would receive the cash from the sale (which you could use for anything you wish, including the purchase of a new home), and you would also receive tax benefits from the charitable gift.
Giving real estate through your will/bequest
You may also make a gift of real estate through your will/bequest.
Benefits of real estate gifts
- You can choose to give your personal residence, vacation home, or farm, but continue to live there.
- You have the option to sell the property to Wentworth at a "bargain" price. This part-gift/part-sale transaction gives you both cash and a charitable deduction.
- You can use an asset you no longer need to make a significant gift to Wentworth.
- You will receive a valuable charitable income tax deduction.
- You will remove the home from your estate, which will reduce your estate taxes.
- You might reduce your capital gains tax.
- You will have the comfort of knowing your home or sentimental property is being used to benefit the education of students.
- You will become a member of Wentworth's Giving Society.
Please note that information and calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on the timing of the gift. |
