Gifting real estate has tax deduction value!


Gifting real estate has tax deduction value!

Gifting real estate has tax deduction value!

Do you have any Denver real estate that you don’t know what to do with?  Have you inherited some real estate that you don’t really want?

Consider transforming your real estate into a gift for hospice. Would you like to make a substantial gift to hospice without touching your cash assets? Consider giving your forgotten or unused real estate. Such a generous gift helps hospice continue to work for years to come and also helps the person donating. When you give appreciated property that you’ve held longer than one year, you get a federal income tax deduction.  You get a deduction for giving to charities and you will also avoid paying capital gains tax. Donors no longer have to deal with that properties maintenance costs, property taxes or insurance. Another benefit to the donor is that they avoid the hassle of selling the real estate.  You can deed the property directly to a hospice or ask your attorney or estate agent to have a few sentences added in your will or trust agreement.


Here are some ways that you can give real estate to a hospice in Colorado:

You can make an outright gift

When you make a gift of Denver real estate you have owned a longer than one year you obtain a federal tax charitable deduction equal to the property’s full market value. This deduction lets you reduce the cost of making the gift and frees up cash that otherwise would have been used to pay the taxes and maintenance on the property. By donating the property to a hospice you also eliminate capital gains tax on its appreciation. Therefore the transfer is not subject to gift tax and the gift reduces your future taxable estate. 


A gift in your will or living trust.

A gift of Colorado real estate through your will or living trust allows you the flexibility to change yourimgres-3 mind and the potential to support hospice with a larger gift than you could during your lifetime. As little as $0.01 or two you can ensure that the support of hospice continues after life and that your estate will benefit from the federal estate tax charitable deduction.


Retained Life Estate 

Perhaps you like the tax advantages a gift of real estate to a hospice would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Hospice but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though the hospice would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you receive an immediate federal income tax charitable deduction for a portion of your home’s value.  


Bargain sale

want to sell your property for less than fair market value? A bargain sale may be the answer when you make a bargain sale you sell your property to our Organization for less than what it is worth. The difference between actual value and sold value is considered a gift to a hospice. A bargain sale can be an effective way to dispose of property that has increased in value and it is the only vehicle that can give you a lump sum of cash and the tax deduction at the same time.

Imagine this scenario. Fred purchases purchases his home years ago and watches it to grow steadily in value, still active in his career and traveling alot.  He’s beginning to find home ownership more and more of a hassle. At this stage in his life Fred has decided to move to a 55 + condominium development images-10in Denver, Colorado where all exterior maintenance is provided and he doesn’t have to worry about security issues. Fred sees this as an opportunity to give his existing house to a charity that is important to him while realizing the valuable tax benefits. Fred qualifies for a federal income tax chart of reduction of $250,000 which is his home fair market value today. He is able to claim 30% of his $200,000 adjusted gross income or $60,000 in the year of the gift. In the five years following he can continue to use up the remaining $190,000 deduction. Fred is happy in his new condo and loves knowing that the gift of his house will make a big difference supporting the mission of hospice.

You can donate your real estate to hospice here.