Your browser does not support JavaScript. Please enable JavaScipt to view our website.

When to Choose a Gift of Real Estate

When to Choose a Gift of Real Estate

Your needs and desires

You desire to provide a significant contribution to Lake Avenue Church while receiving the maximum charitable tax deduction possible. You also want to minimize your capital gains tax liability.

Why a Gift of Real Estate may be a wise choice

Contributing real estate directly to Lake Avenue Church offers you several benefits while strengthening the work of our Church:

  • You may donate commercial, industrial or residential property, as well as land parcels.
  • To receive fixed annual income (rather than an amount based on a percentage of trust assets), consider a Charitable Remainder Annuity Trust (CRAT). Other than providing a fixed payment rather than a variable payment, a CRAT is identical to a Charitable Remainder Unitrust (CRUT).
  • You may deduct the present market value of the real estate, determined by an independent real estate appraiser that you hire, on your income tax filing.
  • By donating the real estate (rather than selling it and donating the proceeds), you eliminate your capital gains taxes. (If the asset has depreciated in value, you will want to sell it and donate the proceeds so you can claim the capital gains loss).
  • You can donate a residence (primary home, vacation home or farm) and retain the right to live in it for the remainder of your life. (You will be responsible for insurance, taxes and general upkeep.) The amount of your tax deduction is based on a formula established by the IRS.
  • You will be assured that your life -- your personal witness -- will be a living legacy through the work of Lake Avenue Church.

How to give a gift of Real Estate

Title to property can be transferred directly to Lake Avenue Church. It is important to determine if the real estate has appreciated or depreciated in value as this will affect whether you donate the property directly or sell it and donate the proceeds. If you want to establish a “Retained Life Estate” donation so you can remain in the property for life, your legal advisor will need to work with our counsel to establish the contract.

What steps to take to make this gift

Please contact Lake Avenue Church to inquire about making a gift of real estate before initiating the process. We will be pleased to have a confidential conversation with you and/or your advisor at no obligation. As some level of Environmental Assessment will be required, at your expense, as well as a title search, please be aware that a gift of real estate may take some time to be finalized. Also, Lake Avenue Church reserves the right to reject any real estate donation if it is determined to carry significant environmental or other risks.

When planning any gift of this kind, please notify us of your intentions so we can honor your desires

Thank you!

Link to this Article