Epworth Children’s Home
2900 Millwood Ave
Columbia SC 29205
803-256-7394

Gifts of Real Estate

A gift of real estate can also be tax-wise. A residence, vacation home, farm, acreage, or vacant lot may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax. By making a gift of this property instead, you would avoid the capital gains tax, and, at the same time, receive a charitable deduction for the full fair market value of the property.

It is also possible to make a gift of your home, farm, or vacation home so that you and your spouse can continue to use it for your lifetimes––while you receive a current income tax deduction.

Example: Mr. and Mrs. Smith own a vacation home in the mountains that they would like to continue using. Its fair market value is $100,000. By contributing the home to us now, but retaining the exclusive right to use it for the rest of their lifetimes, the Smiths are able to achieve a current income tax charitable contribution deduction of approximately $25,000. (The precise amount will depend upon their ages, the useful life of the house, and other factors.)

 

Copyright 2000-2013 by Calder P. Sinclair.  All rights reserved.  This information is designed to provide accurate and authoritative information in regard to the subject matter covered.  It is provided with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services.  If legal advice or other expert assistance is required, the services of a competent professional person should be sought.