As a former tax attorney, I have been able to help Sun Health Foundation donors think creatively about different ways to make a charitable gift. One option sometimes overlooked, and that can be a win-win, is a gift of real estate.
If you want to use real estate to support your favorite charitable cause, you can make the gift in several ways:
- Give the property directly to Sun Health Foundation. This earns you an immediate income tax deduction.
- Make a gift through your will. Made as part of your estate plan, a charitable bequest gives your estate an estate tax deduction and supports the Sun Health Foundation’s good work long after you’re gone.
- Consider a bargain sale. This is part gift, part sale, meaning we purchase the property from you for less than its current value. This entitles you to a charitable income tax deduction based on the value of the gift portion, reduces your capital gains taxes and provides you with cash from the sale.
- Donate your home, but keep living in it. Through a “retained life estate,” you make a gift while retaining the right to use and occupy the property during your life. You realize an immediate income tax deduction for a portion of your home’s value.
When determining whether a gift of real estate is right for you, consider:
- Has owning or managing the property become a burden?
- What’s the property’s net rate of return?
- What are the tax consequences of selling the property?
- How will keeping the property affect my estate?
- Who among my heirs wishes to inherit the property?
Information provided by The Stelter Company
Sharon Thornton, JD, LL.M,
Exec. VP and Chief Philanthropy Officer
If you’re considering using real estate to support Sun Health Foundation’s mission, please call me directly at 623-832-5582 or email me at [email protected]. to discuss details, including how title is held, existing mortgages and liens. You don’t want these issues to delay or interrupt your intended gift.
