For many people real estate assets comprise the largest portion of their overall net worth. These assets can be an excellent option for accomplishing your philanthropic goals.
Benefits
Details
There are a variety of ways to use real estate assets to make a charitable gift.
Outright gift - the easiest way to use real estate assets for charitable purposes is to make an outright gift of the title to the property. This option provides the donor with avoidance of all capital gains on the appreciation and a charitable deduction for the fair marekt value.
Bargain sale - Another option is to sell the property to us at a reduced rate. With this strategy, the property is sold to Androscoggin Home Care & Hospice at a price below fair market value. The difference between the sale price and fair market value is considered a charitable donation, entitling the donor to income tax deduction and partial avoidance of capital gains.
Retained life insurance - a third option is a gift of retained life estate, in which the donor gives Androscoggin Home Care & Hospice an interest in a residence, be it partial or full, yet retains the right to use the property for the rest of their life. The donor continues to be responsible for all routine expenses, including maintenance fees, insurance, repairs, ect. At the end of your life, the charity can sell the property and use the proceeds in support of an area of your choosing. This is a great option for those with vacation homes or second homes that want to make a gift to Androscoggin Home Care & Hospice though still retain use of their property, and need a large income tax charitable deduction now.
For more information
To learn more about gifting real estate to Androscoggin Home Care & Hospice, please contact us.