Give Your House Away, Get Huge Tax Benefits
We’ve heard about donating money, time, cars and even credit card rewards, but what about property? The New York Times has an interesting story about an elderly couple who donated a summer home to charity. The 80-something couple donated their island cottage, bought in 1965 for $20,000, and received over $6,000 monthly income and a sizeable tax write-off. Bonus: They designated the AARP and other charities of their choice as recipients, so they know the donation is going to causes important to them. According to the article, real estate donations are becoming more accepted.
Still, only about two percent of charitable contributions each year are real estate, ranging in value from $250,000 to $15 million. This is one of the most flexible options when it comes to charitable donations. A property owner could do 100-percent donation or part-sell, part-gift. Real estate donations can avoid the capital gains tax altogether or help even out the tax picture when other property has been sold at large gains.
By and large, those who donate real estate to charity are successful, wealthy philanthropists who want to give back to the community, according to the article. So it’s an interesting idea, but may not be for everyone.
November 13th, 2007 at 5:13 pm
[…] unknown wrote an interesting post today onHere’s a quick excerptThe New York Times has an interesting story about an elderly couple who donated a summer home to charity. The 80-something couple donated their island cottage, bought in 1965 for $20000, and received over $6000 monthly income and a [. … […]