Real Estate

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 income and estate tax deductions. This can be accomplished for your client by considering using real estate to make a charitable gift to the Eau Claire Community Foundation.

How You Benefit

In addition to freeing the client from the costs and responsibilities of ownership, making an outright gift of property that has been owned for more than a year offers these benefits:

  • Client obtains an income tax charitable deduction equal to the property’s full fair market value. This deduction reduces the cost of making the gift and frees cash that otherwise would have been used to pay taxes.
  • Capital gains tax on the property’s appreciation is eliminated.
  • The gift reduces your client’s future taxable estate.

How it Works

A client can donate property outright, place it in a trust, or give it on death by will or trust. Following are details on the most straightforward way to make such a gift, direct donation of real property.

The amount of the tax deduction for charitable contributions is limited to 50 percent of adjusted gross income and may be limited to 20 or 30 percent of adjusted gross income, depending on the type of property given and the type of organization it is given to. Any unused amount may be carried over for up to an additional 5 years.

In most situations, a gift to the Eau Claire Community Foundation allows maximum benefit to your client. The Foundation does not offer legal advice to individuals regarding their estate plans. We encourage donors considering a bequest to the Foundation to work with their legal and financial advisors.

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