Gifts of Real Estate
By making a gift of real estate to The Jewish Community Foundation, donors can avoid capital gains or estate taxes while making a significant contribution.
There are many ways to make a real estate gift. Donors can give real estate outright, or use it to establish a charitable remainder annuity trust or charitable remainder unitrust.
Donors can even reserve the right to live in their homes for life. Alternatively, donors can convey a fractional interest in a second residence or vacation home to the Foundation, which allows use of the property for part of the year.
- Outright gifts: donors receive a current income tax charitable deduction and avoid capital gains taxes.
- Charitable remainder trusts: donors can avoid capital gains tax on any appreciation, take a current income tax charitable deduction based on the present value of Foundation's remainder interest, and receive annual income from the charitable trust.
- Lifetime transfers: by transfering the deed to a primary or secondary residence to the Foundation while reserving the right to live in it, donors can avoid any tax on the value of the property (including the capital gain), generate a current income tax charitable deduction and remove the property from his or her estate, thereby reducing estate taxes. If, in the future, the donor decides to move, he or she can relinquish the life estate to the Foundation and obtain an additional charitable income tax deduction.
- Fractional interest: If donating a fractional interest in a vacation home to the Foundation, donors can take an income tax charitable deduction equal to the contributed fractional interest of the fair market value of the property, while retaining the right to use it for part of the year.
At a glance
- Can be given outright, or used to create a charitable trust
- Offers benefits in capital gains, income and/or estate taxes
- May be structured in a variety of innovative ways, including allowing lifetime use of the property
- Creates a significant gift to the community