1 of 4 photos Bloomingdale Boro For Sale $319,900 3 Beds / 2 Baths
Rare opportunity to purchase a short sale with tons of great updates in pristine condition. This home is just minutes away from the schools and has a back yard that's great for entertaining...
1 of 4 photos Hawthorne Boro For Sale $359,900 3 Beds / 2 Baths
One of a Kind chance to own an immaculately kept home in a great location in Hawthorne.
This home offers great space and a separate entrance for mother daughter capability...
1 of 4 photos Morristown New Jersey For Sale $2,695 2 Beds / 2.5 Baths
Beautiful Fully FURNISHED town house for rent or purchase ! Large open floor plan with Living, Dinning ,and laundry room. Walk to town, restuarants, shops, nitelife and NYC train...
1 of 11 photos Butler Boro For Sale $369,000 3 Beds / 2 Baths
Welcome Home!!! This home has been fully upgraded from exterior to interior in 2008. Brand new landscaping gives this home a ton of curb appeal. The interior boasts a perfectly laid out floor plan...
1 of 11 photos Butler Boro For Sale $369,000 3 Beds / 2 Baths
Welcome Home!!! This home has been fully upgraded from exterior to interior in 2008. Brand new landscaping gives this home a ton of curb appeal. The interior boasts a perfectly laid out floor plan...
If you've owned your home or other real estate for a long time, no doubt it has increased in value significantly.
Home Gifting can help you save real estate taxes on your Gold Coast real estate property.
What happens if you sell the property?
First of all, the sale is subject to capital gains tax on the property's appreciation. If the property has
been your main home for at least two of the past five years, you can exclude up to $250,000 of gain ($500,000 for married couples). However, this opportunity to avoid capital gains tax doesn't apply if the property is a vacation home, land or any real estate other than your primary residence.
Before you sell your Gold Coast real estate, consider a new option. Home Gifting offers you options.
You can give the property outright, place it in trust, retain the use of it for life or give it by will.
All of these methods will enable you to enjoy personal financial benefits while supporting our work in a
meaningful way.
There are significant tax advantages for "gifting" real estate. It is sometimes possible to convert land and other real property into an income stream rather than it being a drain on resources.
Why do people"gift" real estate rather than sell it?
They own land which has appreciated in value.
Heirs who are already provided for, or who would prefer cash as their inheritance rather than the real estate.
An estate tax problem.
A desire for a sizable income tax charitable deduction.
A need for increased income now and in the future.
A strong aversion to paying capital gains taxes.
There are several ways to make a gift of Gold Coast real estate:
An outright gift made immediately. Such a gift maximizes the income tax charitable deduction and removes the property from the donor's taxable estate.
A gift of a partial interest in the property. For example; a donor might contribute a 50% interest in a vacation home to the person or organization of their choice.
A simple bequest of real estate. By leaving real property to someone or an organization in your will you avoid having the value of the property taxed in your estate.
A gift of a remainder interest in a residence or farm. The donor in this case deeds the property to the Lincoln Center, Inc. now, and retains for herself the right to continue to live in the residence for the rest of her life.
The life-estate can be for more than one lifetime. Donor and spouse, for example, could be the life-tenants. Life-tenants need not be related.
A gift of real estate to a charitable remainder unitrust. The trustee reinvests the sale proceeds in order to pay the donor income either for life or for a term of years.
Tax Benefits of an Outright Gift
When you make an outright gift of real property held for more than a year, you obtain an income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes.
By donating the property, you also avoid capital gains tax on the property's appreciation. Also, the transfer isn't subject to the gift tax, and the gift reduces your taxable estate.
Example: Sally gifts a vacation cottage she no longer uses. It originally cost $50,000 but is now worth $150,000. She gets a $150,000 charitable deduction, which represents a tax savings of $42,000 in her 28 percent tax bracket. And she completely avoids tax on the $100,000 of appreciation. Now she no longer has to maintain the cottage, and the property won't be taxable in her estate.
Your deduction for a gift of appreciated real estate in any year is generally limited to 30 percent of your adjusted gross income, with a five-year carryover of the unused deduction. If you elect to base your charitable deduction on the cost of the property, this raises your AGI limitation to 50 percent with a five-year carryover, but this has implications for all gifts made during or carried over to that year.
For real estate you've held only short-term, your charitable deduction is limited to the property's cost basis, but there's still no tax on the appreciation. The deduction may be claimed up to 50 percent of your adjusted gross income, again with a five-year carryover for any excess value.
Your gift is usually effective when a properly executed and notarized deed, suitable for recording, is delivered. The amount of your deduction for a gift of real estate (if more than $5,000) must be substantiated by a qualified appraisal of its fair market value.
Give Your Home But Enjoy Life Use
Here's another home gifting option. Let's assume you like the tax advantages a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. You'd like to retain the right to rent your house or make improvements. You may also want a survivor (perhaps your spouse) to enjoy life occupancy. But, ultimately, you'd like for a charitable organization to receive the property.
By deeding your home to an organization now, subject to all these rights, you can still obtain valuable tax savings. This arrangement is called a retained life estate. Even though the non-profit would not actually take possession of the residence until after the lifetimes of the tenants you've named, you receive an immediate income tax charitable deduction because the gift cannot be revoked. The amount of the deduction depends on the value of the property and your age (and the age of any other person given life use).
You can set up a retained life estate if you want someone other than a spouse to have use of the property after your lifetime. Leaving a home to a spouse through a will or some form of joint ownership generally does not result in a federal estate tax under current laws. However, if you want one of your children or a relative or friend to live in the home after your lifetime, you may find that estate taxes will have to be paid to leave the property to that person.
With this kind of gift, you retain the rights and responsibilities of ownership-other than disposing of the property after your death. You may even decide to move out temporarily or permanently. Should you rent the home, all of the rent belongs to you.
You can make a retained life estate arrangement with any personal residence, including a farm, vacation home, condominium or stock in a cooperative housing corporation (if it's used by you). A farm may include acreage with or without a house.
Obtain a Life Income From Your Gift
Instead of making an outright gift of real property or establishing a retained life estate, you can use unmortgaged property to fund a qualified charitable remainder trust. Once the property has been transferred to the trust, the trustee can then sell it and invest the proceeds in income-producing securities, which become the source for lifetime income payments to you and any other recipient you name. When the trust terminates, the organization or person you gifted the real estate to receives the remainder (without exposure to estate taxes when spouses are the only income beneficiaries).
A charitable gift of real estate is advantageous for many reasons.
Either an outright gift or a remainder interest results in valuable income and estate tax deductions, and tax on the capital gain can be avoided.
A "bargain sale" to someone gives you some money back and reduces your capital gains tax exposure.
A gift in your will assures that the value of the property will qualify for a charitable deduction for estate tax purposes.
Giving someone outright use of the property now will free you from the responsibilities and costs of looking after it.
The information on this site is not intended as legal, tax or investment advice. For such advice on home gifting options
, please consult an attorney, tax professional or investment professional.
I live out of state and am relocating to GOLD CO - A great question!! The criteria you should use are the things that are most important to you and your family's unique situation. Do you want a lot of ..
Property Inspection - Regardless of what the inspector may uncover, you shouldn't be
overly concerned about the actual home inspection
Pick An Offer - Picking among several offers isn't always as easy as choosing the highest price, especially in hot markets.
Open House Expectations - Was vacating your home for four or five prime-time hours worth the
inconvenience?
Open House Expectations - Was vacating your home for four or five prime-time hours worth the
inconvenience?
Your Open House - Public open houses may be more beneficial for the
agents themselves than for the home sellers.
Marketing Info - Your broker's marketing efforts and considerations will
include advertising, showing the property, how long the house has been on the
market and whether you're buying another home.
Selling My Property - The age-old observation that "you never get a
second chance to make a first impression" certainly applies when it comes to
attracting buyers to a for-sale home.
Getting Gold Coast Real Estate Ready - A
house that "sparkles" on the surface will sell faster than its shabby neighbor,
even though both are structurally well-maintained.
Before you sell your Gold Coast real estate, consider a new option. Home Gifting offers you options.
You can give the property outright, place it in trust, retain the use of it for life or give it by will.
All of these methods will enable you to enjoy personal financial benefits while supporting our work in a
meaningful way.
There are significant tax advantages for "gifting" real estate. It is sometimes possible to convert land and other real property into an income stream rather than it being a drain on resources.
Why do people"gift" real estate rather than sell it?
Your deduction for a gift of appreciated real estate in any year is generally limited to 30 percent of your adjusted gross income, with a five-year carryover of the unused deduction. If you elect to base your charitable deduction on the cost of the property, this raises your AGI limitation to 50 percent with a five-year carryover, but this has implications for all gifts made during or carried over to that year.
For real estate you've held only short-term, your charitable deduction is limited to the property's cost basis, but there's still no tax on the appreciation. The deduction may be claimed up to 50 percent of your adjusted gross income, again with a five-year carryover for any excess value.
Your gift is usually effective when a properly executed and notarized deed, suitable for recording, is delivered. The amount of your deduction for a gift of real estate (if more than $5,000) must be substantiated by a qualified appraisal of its fair market value.
