Real Estate

The most tax-advantaged way to make charitable contributions is to donate appreciated assets, particularly stocks and real estate. If you own real estate and have been thinking of a substantial gift to support Husson, perhaps now is the time to consider a gift of real property to accomplish your goals. There are a number of reasons why you might choose to make a gift of real estate:

• You want to support Husson but wish to hold on to assets of a more liquid nature (cash and stocks).

• Your property has greatly appreciated in value, and you would like to minimize capital gains and income taxes that an outright sale might produce.

• You own vacation, rental, or other commercial property where management issues and annual maintenance costs have become a headache.

• You would like to convert your real estate into an income stream for your lifetime.

Retained Life Estate

• If you own real estate that you do not wish to pass on through your estate but which you wish to enjoy throughout your life, then you may make a gift of the property to Husson while retaining the use of it through your lifetime. The property may be your primary residence, a second home, farm, or forest land.

• In return for such a gift, you can claim an immediate income tax charitable deduction equal to the present value of Husson’s interest. Since you retain lifetime use of the property, the income tax deduction is less than the full appraised value of the property.

• While you are living there, you continue to pay taxes and upkeep. Any capital improvements you make should be partially income tax deductible.

• Since your home is transferred to Husson now, the gift reduces your taxable estate, potentially providing additional family tax savings.

Bargain Sale

• You may own a capital asset, such as securities or real estate, which you would be able to donate to Husson if you could recover a portion of its value.

• This can be accomplished through a bargain sale where Husson purchases the asset at less than its fair market value.

• The actual sale price can be negotiated.

• You would be able to take a charitable income tax deduction for the difference between the sale price and the property’s fair market value. You would, however, be responsible for a partial capital gain tax on any recovered portion of the property’s value.

For more information, contact our Director of Planned Giving.