Gifts Of Real Estate
A gift of real estate, especially a gift of a principal residence or vacation
residence, may be an attractive way of making a substantial donation to one
of the Masonic charities. Many of the same benefits provided for gifts of appreciated
securities, such as a deduction based on the fair market value of the property
and avoidance of any capital gains, are available for appreciated real estate.
Donors may give the entire property or a fractional interest in real estate
to a Masonic charity. Gifts of real estate are subject to specific policy guidelines.
For further information on these guidelines, please contact a gift planning
officer at the Office of Gift Planning at 1-800-599-6454.
If you are considering a real estate gift, please consider some of the following
possibilities that may be advantageous to you.
Outright Gift
A gift of an appreciated piece of real estate owned for more than one year and
a day may receive a tax deduction for the full current market value, thus avoiding
any capital gains on the appreciated real estate. Your gift is subject to the
same 30% ceiling for adjusted gross income as for securities.
Retained Life Estate
You can also make a gift of your personal residence, vacation home, or farm
to a Masonic charity and retain the right to live in it for the remainder of
you and your spouse's lifetimes. During the time that you or your spouse are
living at the residence, you would be responsible for the maintenance, insurance,
and taxes on the property. A substantial income tax deduction would also be
available to you based on the appraised value of the property. The size of this
deduction is dependent upon the age of you and your spouse, if applicable, at
the time of contribution.
Funding a Charitable Remainder Trust
You may also use real estate to fund a charitable remainder trust, provided
the property is not subject to a mortgage at the time of the gift. Generally,
the property is transferred to a charitable remainder trust where, upon receipt
of the real estate, the trustee can then sell the transferred real estate and
invest the proceeds in income-producing securities which provide liquid funds
for payments to you and/or any other individual, including your spouse, you
may designate for a period of years up to 20 years or the lives of those individuals
so designated. The principal from the charitable remainder trust will go to
a Masonic charity at the end of the trust term. This relieves you of the burden
of having to sell the property and avoiding or deferring any capital gains incurred
on the sale of property. One of the more common types of trusts funded by real
estate is the "flip" charitable remainder trust. Please contact a planned giving
officer at the Office of Gift Planning at 800-599-6454 for further information
on this attractive way of giving real estate.
Return to Outright Gifts.
