Why Donate Real Estate?
Real Estate Donations - Why Donate Real Estate / Land /Property
Most Americans do not have a large real estate portfolio. Those that do have found out they can enjoy significant financial benefits and provide a charitable benefit to the community at the same time with a Real Estate Donation. A real estate donation to charity can help you rid yourself of underperforming properties and also avoid capital gains tax on highly appreciated property. A real estate donation significantly reduces your legal and tax liabilities on the properties you donate and more efficiently attain personal financial goals while also supporting Real Estate with Causes and our many charitable endeavors.
Examples of Property Donations to our 501c3 Charity:
The answer is that, in many cases, if one takes into consideration ongoing property taxes, maintenance costs, income taxes — or if the property is sold, the cost of legal fees, brokerage fees, estate taxes, inheritance taxes and capital gains taxes — it is often financially preferable to donate properties to Real Estate with Causes. It also saves heirs the trouble of trying to divvy up the gains if the will is potentially contentious or inequitable. Sometimes there are intangible benefits as well. Often a donated estate will bear the donor’s name, making the property a de facto memorial.
One of the advantages to the donor is that the size of the tax deduction is determined by the current market value of the property, as opposed to the cost of the property when it was purchased. So if you purchased your property in 1988 for $112,000 and today it is worth $412,000, the current value is what you base your tax deduction on. (Also, by donating a property instead of selling it outright, deeded property donors can avoid paying brokers’ fees.) Real Estate Tax Deduction
- Those that want to help improve the communities in which they live. Ideally, this should be the greatest consideration.
- Businesses with properties that are idle, lacking a positive cash flow, or assets that will never reach any useable potential.
- Fully depreciated properties that do not serve the financial interests of the donor.
- Uninsured catastrophes that are more a detriment financially to continue to maintain.
Of course, these are just a few of the reasons for you to consider a charitable donation of property. See more here: Who Should Donate Real Estate
There are also ways of donating a home but still being able to enjoy it during one’s lifetime. Property owners can create a living trust, which allows them to live in the house with the understanding that the property title will be transferred to our charity upon their departure from life.
Owners still receive the charitable tax deduction while they are living, and depending on the property and its income potential, they may even be able to get lifetime annuity. At the same time, they avoid passing on the tax burden to family members after dying.
A charitable gift annuity is an especially attractive option for larger properties, in cases where heirs may be unable to afford the ongoing maintenance costs and property taxes. That way, even if one’s family is no longer able to enjoy a home, by donating they can keep more of what, in the long run, is more useful: dollars in the bank account. Click Here to Learn more about Charitable Gift Annuity.
For most of us, we hope to provide financial support for our families when “our time” approaches. The reality is, however, that some of us have family members that do not require vast financial help. In this instance, estate giving is a great option to ensure that your hard work will help those less fortunate.
Even after passing away, estate giving is a way to ensure that the lives of future generations will benefit from your successes. By planning to give a portion of your assets as charitable contributions, you are making a decision to allow your legacy to live on in the form of support and funding for many great causes worldwide.
Real Estate with Causes specializes in the allocation of these contributions and provides a safe and easy way to make sure that your assets go to the causes we support that could most benefit from your generosity. Estate giving occurs throughout our society, and people from all walks of life participate. Whether you are looking to donate a portion of what you leave behind, or your entire net worth, Real Estate with Causes has the experience, reputation, and ability to help you with any charitable planned giving services you may require. We encourage you to give us a call to speak with one of our gift annuity experts.
Not only can we help you determine whether or not a living trust is the best choice for you, but we also walk you through the process of actually setting your gift annuity groundwork.