Gifts of Real Estate
Do you have highly appreciated rental property that you’re tired of managing but need the monthly income? Or, do you have excess property, like a vacation home, you are no longer using, and want to avoid capital gains?
And are you interested in:
- Avoiding capital gains taxes?
- Maximizing your tax deductions?
- Receiving a dependable income for the rest of your life?
- Supporting your favorite causes and nonprofits now and after your lifetime?
- Exiting a 1031 exchange and avoiding capital gains?
- Eliminating the headaches of managing rental property?
When you give, you also gain!
It is possible you own a piece of real estate, which by converting to a charitable gift at the Imperial Valley Community Foundation, would allow you to give support to a cause you love. You will also gain the satisfaction of making a difference while receiving the maximum tax benefits allowed by law.
A gift of real estate offers an excellent way to unlock the full appraised value of a property, receive significant tax advantages, possibly increase your income, and at the same time, build a charitable legacy supporting your favorite causes for years to come.
There are many types of real estate you can give and many reasons why gifts of property are a flexible and beneficial choice. The Imperial Valley Community Foundation can help you decide which of the options right for you.
Giving Options
Receive Multiple Tax Benefits with an Outright Gift
An outright gift of real estate entitles you to receive multiple tax benefits. The Imperial Valley Community Foundation makes it easy for you to gift your entire property or a portion of it to establish a charitable fund that can support your favorite causes and provide you with benefits that can include: receiving a charitable tax deduction; avoiding capital gains tax; avoiding future estate taxes on the gifted property.
Receive an Income for Life
A Charitable Remainder Trust (CRT) allows you to make a gift of real estate (including 1031 properties) and receive an income stream for you and your spouse for the rest of your lives. You can benefit considerably from a CRT if you have highly appreciated low-yielding real estate. You avoid capital gains tax and receive a tax deduction for a portion of the gift.
A Charitable Gift Annuity (CGA) is similar to a charitable remainder trust and provides a guaranteed income stream to you and to your spouse for the rest of your lives. You transfer your property (including 1031 properties) to the Imperial Valley Community Foundation and receive a charitable deduction for a portion of the transfer in addition to avoiding capital gains tax and future estate taxes on the gifted property.
Receive Tax Estate Relief and Create a Lasting Legacy
Making a charitable gift of real estate through your will or living trust allows you to avoid potential future estate taxes. In addition, your family will not be burdened with the upkeep and sale of the property liability insurance or property taxes.
Save Capital Gains, Support your Community through a Bargain Sale
A Bargain Sale can reduce your capital gains burden, generate a charitable tax deduction and give you cash for your property. Because a Bargain Sale is considered part sale and part charitable gift, you get some of the advantages of both. A Bargain Sale occurs when you sell your property to the Imperial Valley Community Foundation for less than its fair market value. You are able to benefit from an immediate tax deduction for the difference between the sale price and the property’s fair market value.
Remain in your Home and Relieve Tax Burdens: A Retained Life Estate
You can make a significant gift to support the causes you care about with the most valuable asset you hold, yet not disrupt your living arrangements or your cash flow. A Retained Life Estate allows you to receive an immediate tax deduction for the present remainder value of your home while you continue to live there for the rest of your lift. After your lifetime, the proceeds from the sale of the property will benefit the causes you choose.
