In reviewing your assets, you might find that real estate, whether your primary residence or vacation home, has appreciated more than your other assets. A gift of real estate to Hood College can offer significant benefits to both you and the College.
Outright Gift of Real Estate
A gift to the College results in a charitable income tax deduction based on the fair market value of the property at the time of the gift. In addition, you will avoid any capital gains tax liability.
Life Income Gifts
A gift of real estate can be structured to provide a life income (usually through a trust or a deferred payment gift annuity). Whatever gift vehicle you choose, you will enjoy a charitable income tax deduction (for a portion of the gift’s value) in the year the gift is made. To ensure that the gift transfer takes place smoothly, the following guidelines apply:
- The property should be mortgage-free and readily salable so that the College does not incur undue carrying expenses.
- You must provide a qualified appraisal to substantiate the value of the property.
Gift of Real Estate with Retained Life Estate
Another option available is to make a gift of your principal residence or vacation home to the College and retain the right to live in the house for your lifetime, known as a Life Estate Agreement. You will receive a charitable income tax deduction for a portion of the fair market value of the home in the year of the gift and retain the rights and duties of ownership for life.
For further information on making a gift of real estate, please contact the Office of Institutional Advancement at (800) 707-5280, option 7.