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7 Ways to Donate Real Estate

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Think Twice Before You Put Out the "For Sale" Sign Consider a Gift of Real Estate 1 ] Make a Gift Today In addition to freeing you from the costs and responsibilities of ownership, making an outright gift of property that you've owned for more than a year offers these benefits: • You obtain an income tax charitable deduction equal to the property's fair market value. This deduction reduces the cost of making your gift and frees cash that otherwise would have been used to pay taxes. • You eliminate capital gains tax on the property's appreciation. • The transfer isn't subject to the gift tax, and the gift reduces your future taxable estate. EXAMPLE Mary gives us a vacation cottage she no longer uses. It originally cost $50,000 but is now worth $150,000. She gets a $150,000 federal income tax charitable deduction, which represents a tax savings of $42,000 in her 28 percent tax bracket, and she completely eliminates tax on the $100,000 of appreciation. Now she no longer has to maintain the cottage. In addition, if Mary's estate is worth more than the current estate tax exemption amount, the property is removed from her estate, reducing her future estate tax liability. 2] Give Real Estate Through Your Will or Living Trust If you are not comfortable making an irrevocable gift of property right now, consider leaving it to us in your will or revocable living trust. This can be the perfect way to support Brown because you are able to help us in the future without using assets today. A gift in your will or living trust can be created or changed at any time. It allows you to continue ownership, enjoy your property during your lifetime and create a lasting legacy in your memory or in memory of a loved one. 3] Donate Your Home, but Keep Living There Many of our supporters can't imagine living anywhere but their current homes. Many would also love to make a significant gift to us but don't have the means to make such Imagine avoiding the hassle of selling a piece of property, with no worry about getting a fair price, and at the same time realizing valuable federal income or estate tax charitable deductions. This can be your reality when you consider using real estate to make a gift to Brown University. A gift of real estate can be completed in a variety of ways. Here are some examples: fair market value: the price that a willing buyer and a willing seller can agree on capital gain: the increase in value of an asset since its original purchase gift tax: tax on gifts generally paid by the person making the gift rather than the recipient irrevocable: cannot be changed or canceled revocable: able to be changed or canceled

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