THE ADVANTAGES OF GIFTING REAL ESTATE

Are you thinking of selling your home? Beware of capital gains tax! You may have a smarter alternative. A gift of real estate – whether it’s your personal residence, a vacation home, a farm, commercial real estate, or vacant land – will enable you to enjoy attractive personal benefits while at the same time supporting the mission of the church.

Implications of a Sale Versus a Gift

When you sell your home you may qualify for an exclusion of up to $250,000 ($500,000 if you’re married) of gain, eliminating capital gains tax on anything up to that amount. This exemption applies if you’ve used the home as your primary residence at least two of the past five years.

However, this capital gains tax break doesn’t apply for sales of any real estate other than your primary residence. Perhaps the easiest way to avoid capital gains tax on real estate is to give it to the Seventh-day Adventist Church. And, of course, none of your sale options can generate a charitable deduction like giving your real estate does.

Review the Benefits

Property that has been held long-term makes an excellent charitable gift and promises you several advantages.

� You avoid the hassle of selling the property.

� The sale frees cash that otherwise would have been used to pay for taxes and upkeep.

� You generally obtain an income tax charitable deduction equal to the property’s full fair market value (if held long-term) instead of the lower cost basis.

� You avoid tax on the property’s appreciation.

� The transfer isn’t subject to the gift tax, and it reduces your taxable estate. Give your home or other real estate to the Church – your personal satisfaction is complemented by valuable tax benefits.