Planned Giving Q&A
Gifts of Real Estate

Q. I have owned and managed a rental property for many years. I depend on rental income, but am tired of managing the property. I don't want to pay a large capital gains tax by selling. What can I do?

A. Charitable remainder trusts are an excellent option in these circumstances, provided that the property is debt free. You can partner with our office to create the trust, which takes ownership of the property and sells it. The proceeds fund the trust, which then pays you quarterly for the rest of your life. At your death, the trust transfers its remaining assets to the Hospital. This option also helps you avoid capital gains and generates a large income tax deduction that can be spread out over six years.

Q. My wife and I are getting ready to sell our home and move into a retirement complex. We've been supporters of the Hospital and would like to make a large gift from the home's sale, but need to keep some of the proceeds for ourselves. Is this possible?

A. Yes. Please talk with us about a charitable bargain sale. In this scenario, you sell your home to us for less than the market value.We then turn around and sell it for full market value. The difference between these two values becomes your gift to the Hospital. You also avoid capital gains tax on the donated portion and receive an income tax deduction.

Q. We would like to donate our vacation home outright to the Hospital. What is the procedure for this? Do I receive a tax deduction?

A. In order to reap the appropriate tax advantages, you will need to work with our office to deed the property to us. We will then hire an agent and sell the property. You will also need to obtain an appraisal for tax purposes. The IRS will require your appraiser to sign off on the appraised value, which will also be your income tax deduction.