1. Make an Outright Gift
A home, land, or rental property can simply be gifted to Twin Pines Housing. If you have owned it for more than a year, you will receive a charitable income tax deduction for its fair market value and avoid paying capital gains tax on the appreciation.
2. Create a Life Estate Agreement
A life estate agreement is a terrific way to gift your primary or vacation home to Twin Pines Housing and still enjoy it for your lifetime. You would continue to pay the maintenance, insurance, and taxes on the property just as you do now. Then, after your lifetime, we can put the house to use without the delays or expense of probate. A sizable charitable deduction is available when you establish a Life Estate Agreement, so you can enjoy the tax benefits today.
3. Sell Your Real Estate at a Bargain Price
Selling your real estate to Twin Pines Housing for a bargain price also offers many financial benefits. First, you will receive a charitable deduction for the discount below its fair market value.
And since some of the property’s appreciation stays with the gifted portion, your capital gain tax on the bargain price is reduced. In fact, many bargain sales are structured so the capital gains tax is completely offset by the tax value of the charitable deduction — a zero tax solution.
Bargain sales are a common way to use the power of tax planning to turn your real estate sale into a charitable gift larger than you may have thought possible.
Please contact us to learn how to plan a gift that meets your financial goals.
David Ely, Director of Communications and Development