REAL ESTATE
If you own a home, cabin, commercial building, farmland or other form of real estate that you no longer wish to occupy or manage, consider a gift to The Salvation Army. Making a gift of real estate can provide you with substantial tax benefits while impacting the lives The Salvation Army touches every day.
Benefits to you:
When you make a gift to The Salvation Army of appreciated real estate that you have owned for more than one year, you can claim an immediate charitable income tax deduction for the fair market value, up to 30% of your adjusted gross income in the year the gift is made. Any unused deduction amounts may be used to reduce taxes in up to five future tax years.
By giving appreciated real estate you also bypass any capital gains tax that would normally be due if you were to sell the real estate.
You can also make a gift of your principal residence or vacation home that allows you and your spouse or another survivor the right to enjoy the property for life. This is called a Reserved Life Estate. A tax deduction is allowed for the value of the eventual charitable gift in the year the gift is made.
A properly planned Reserved Life Estate will remove the value of your property from your estate. A Reserved Life Estate also provides excellent tax benefits.
Appreciated property such as real estate can be used to produce income to you and your spouse or another individual for life or a period of years. By establishing a properly structured charitable income arrangement or charitable trusts arrangement, you can avoid the capital gains tax on the increased value of the property, and enjoy a current income tax deduction for the value of the gift.
