GIFTS OF REAL ESTATE

A gift of real estate is a unique way to provide a lasting benefit to Bryant and to receive a charitable deduction based on the fair market value of the property. The donor is entitled to an income-tax deduction based on a qualified appraisal. When making the real estate gift outright, the donor can claim a deduction up to 30 percent of his or her adjusted gross income in the year of the gift. Any amount exceeding the 30 percent ceiling can be carried forward and deducted for up to five more years. As the donor, you would also avoid a potential capital gains tax on the property.

You may want to continue living in your home for your lifetime, with life use for your surviving spouse as well. Transferring ownership of your personal residence to Bryant while retaining the enjoyment of the property for the remainder of your lifetime is known as a retained life estate. You can make the gift, deeding the property to Bryant today and getting a sizable, current income-tax deduction based on the value of the property and the age of you and your spouse.

A donor can also transfer real estate to a charitable trust and retain an income for life. Through such a plan, a donor can convert a non-income-producing asset to a new source of income, receive an income-tax deduction for part of the gift, avoid capital gains tax when the property is sold by the trust, and make a significant gift to Bryant University.

This trust would pay you (and, if you like, your spouse) income for life while providing Bryant University with much-needed financial assistance upon the termination of the trust.

For more information, and to make the most advantageous annuity arrangement for you, contact Richard Lafleur, planned giving officer, at (401) 232-6561 or (877) 353-5667 or rlafleur@bryant.edu.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.