Case Study

When the burden of property ownership outweighs the benefits, it might make sense to opt for a change: Sell the house, unload the vacation home or put your office building on the market. Before you make a move, however, consider the possibilities a charitable donation of real estate brings. Here's a hypothetical example.

How It Works

Janet purchased her home years ago and has watched it grow steadily in value. Still active in her career and traveling frequently, she's beginning to find home ownership more and more of a hassle. At this stage of her life, Janet has decided to move to a 55+ condominium development, where all exterior maintenance is provided and she doesn't have to worry about security issues. Janet sees this as an opportunity to give her existing house to a charity that's important to her while realizing valuable tax benefits.

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Take charge of your tax dollars. Ask us how we can help redirect your tax dollars to something you feel passionate about supporting.

The Tax Benefits

Janet receives an income tax charitable deduction of $250,000, which is for her home's fair market value today. She is able to claim 30 percent of her $200,000 adjusted gross income, or $60,000, in the year of the gift. In the five years following, she can continue to use up the remaining $190,000 deduction. Janet uses her deduction over time because the deduction for a gift of appreciated real estate in any year is generally limited to 30 percent of a person's adjusted gross income, with a five-year carryover of the unused deduction.

We Can Help

To learn more about supporting Gustavus Adolphus College today with a gift of real estate, contact Jackie Peterson at 507-933-7543 or jpeters9@gustavus.edu.