There are a number of gift arrangements through which you can contribute real estate to Barnard and achieve financial and tax benefits.
You may transfer ownership of real estate to Barnard with no strings attached and gain an income tax deduction for the appraised value of the property. You will have the opportunity to designate how you would like your contribution to be used to further Barnard’s mission.
Gift at a bargain price
If you’d like to make a gift to Barnard, but you need some of the proceeds from the sale of your property, you can agree to sell the property to Barnard at a bargain price. This is called a bargain sale.
Gift that creates an income stream
You can turn real estate into income. If you are ready to move from your home, and don’t need the proceeds to purchase another residence, but could use additional income, a “flip” trust, a type of charitable remainder trust, might be right for you.
With a “flip” trust, you can:
- Make a meaningful gift to Barnard in the area of your choice;
- Generate a new income stream once the property is converted to income-producing investments;
- Avoid immediate capital gain taxes that would result if you sold the property; and
- Receive an immediate income tax deduction for the value of the remainder interest (subject to certain limitations, for those who itemize).
Gift of a remainder interest
If you would like to leave your home to Barnard at your death, but would like to realize tax benefits now, it is possible to do so through a gift arrangement called a retained life estate. A donor can claim a federal income tax deduction for a portion of the value of the property (the “remainder” interest), and remains responsible for all the taxes, maintenance, and insurance while she is alive. If at any time the donor decides to move from the property, the gift can be accelerated and an additional income tax deduction may be possible.
You can make a significant impact on Barnard with a gift a real estate. Gifts of real estate can be quite complex and there are many details to consider. For any gift of real estate, a donor must have her own legal counsel. To discuss the ways you can use real estate to support Barnard’s mission, please contact Audra Lewton, Director of Gift and Estate Planning, at firstname.lastname@example.org or (212) 870-2534.