Turn your property gains into community good!
Making a charitable gift of real estate through the PineBelt Foundation can help you turn your property gains into community good. Gifts of real estate range from personal residences and vacation homes to rental properties, farmland, and commercially developed land — the value of which may exceed that of any other asset you own. With the help of the PineBelt Foundation, you can use real estate to make a bigger charitable difference than you thought possible, avoid estate taxes, and minimize or eliminate burden placed on your heirs.
You may choose to give real estate outright and receive an immediate tax deduction, or retain the use of the property during your lifetime and make a planned gift to the PineBelt Foundation. You may also choose to convert real estate into a stream of income for the rest of your life by establishing a Charitable Remainder Trust with the PineBelt Foundation. Doing this lets you transform a low-yield asset into a higher-yield, income-producing asset and claim a tax deduction for the charitable portion of the gift.
A gift of real estate must be professionally appraised to establish its fair market value. It is also assessed for compliance with our gift acceptance policies to make sure its resale will provide the appropriate value to community.
Gifts of Real Estate Make Economic Sense – When you plan to make a charitable gift to your hometown, you should consider making a gift of real estate. There are several special incentives to encourage gifts of real estate.
Note: All Gifts of this nature have to be evaluated by the PineBelt Foundation’s Board of Directors.
Benefits of Giving Real Estate
- Provides the satisfaction of making a gift today that can be invested in your community and favorite charities
- By-passes capital gains taxes on the gift of real estate
- Creates an immediate charitable income tax deduction
- Lowers insurance and maintenance costs
- Reduces management worries
- Reduces estate taxes and property taxes
Ways to Give Real Estate
A person can take an income tax deduction for 100% of the fair market value of real estate held for more than one year. In addition, the capital gains taxes due if the property had been sold are bypassed when the real estate is gifted. The outright gift of the property reduces your taxable estate. The amount of income tax deduction that can be used in any one year is limited to 30% of adjusted gross income. Any excess deduction can be carried forward for up to five additional years. For example, if your adjusted gross income for the year is $100,000, up to $30,000 of an outright gift of real estate given to benefit your hometown or favorite charities is deducted this year. Any amount over $30,000 may be carried forward for up to five additional years.
Gifts by Will or Trust
The most frequent way to make a gift of real estate is through your Will and/or a revocable trust. Your estate will receive a 100% charitable deduction for the full fair market value of the property with no limit on the amount.
Gifts of Property While Retaining Income
An advantageous situation when you no longer want to own real estate, desire lifetime income, and want to make a gift to benefit your community is to set up a Charitable Remainder Trust. The ownership of the real estate is transferred to the trust. The trust then sells the real estate and reinvests the proceeds to provide an income. For more information, please see the section on Charitable Remainder Trusts. This type of gift plan provides the following benefits:
- Gain the satisfaction of making a gift today that will benefit your community
- Increase your income for life
- Remove financial and personal burdens of property management
- Receive an immediate charitable income tax deduction
- Bypass estate and settlement costs
- Provide tax-free growth of assets inside the trust.
What is Life Estate? Life Estate is a current gift of your home, farm, vacation home, or other property to the PineBelt Foundation. You continue to live in the property for life or a specified term of years, while continuing to be responsible for all taxes and upkeep. The property passes to the PineBelt Foundation or a named charity when your life estate ends.
Invest in Your Community With a Gift of Real Estate.
Great for making a gift, creating a current income tax deductin, and also transferring the burden of managing the property.
For more information please contact Theresa Erickson, Executive Director at contact@PineBeltFoundation.org or call 601.583.6180