If you own a personal residence, vacation home or commercial real estate that has appreciated over time, it’s possible to sell the property and increase income while getting as many tax advantages as possible. You can accomplish all of this and at the same time create your Jewish legacy for the organizations you care most about. The Oregon Jewish Community Foundation can help you accomplish this through a charitable gift of your residence or commercial real estate.
Charitable Gifts from the Sale of Your Home
If your goals include the ability to live in your home and receive a current tax deduction, a life estate reserved may be the plan for you. With a life estate, you deed your home to charity but reserve the right to continue using it for life. You benefit from a current charitable tax deduction, and OJCF receives your home in the future to create a charitable endowment in your name to support the Jewish organization(s) of your choice.
A bargain sale is another option. By selling your home to OJCF at a discount, you will receive a charitable deduction for the difference between the market value and the sale price. Your $250,000 home exclusion ($500,000 for married couples) may cover the taxable gain on the cash you receive for the sale of a personal residence, and any remaining gain may be offset by your charitable deduction. OJCF will then sell the home on the open market and set up a donor-advised fund or an endowment in your name.
You can also transfer your home tax free and receive income for the rest of your life with a tax-free sale in a trust. A charitable remainder unitrust permits the sale of your home tax free and then provides you with income and a current charitable income tax deduction for the remaining trust principal. If you like the idea of the unitrust but want some cash upfront when your property sells, you may be interested in a sale and unitrust. Contact OJCF to learn how you can receive cash income and a
charitable deduction from this plan.
Gifts of Land and Commercial Real Estate
A charitable gift of land or commercial real estate may provide you with a way to sell your property tax free, increase your income for retirement and benefit from a charitable tax deduction. Options that provide charitable deductions and tax savings include outright gifts to OJCF, charitable remainder trusts and charitable gift annuities, which also provide fixed income.
For more information on how you can use gifts of real estate to create your Jewish legacy for our shared Jewish community, call the Oregon Jewish Community Foundation at 503-248-
9328 or email info@ojcf.org. OJCF does not provide tax or legal advice. This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal
financial advisor for information specific to your situation.
(c) Crescendo 2013 material included with permission.
