GIFTS OF REAL ESTATE

Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence.

REAL ESTATE—OUTRIGHT GIFT

You receive a charitable income-tax deduction for the full fair-market value of the unencumbered real estate. You may apply the deduction up to 30% of your adjusted gross income—in the year of the gift—with the five-year carryover provision. You avoid capital-gain tax on the appreciation you have in the property, and there are no gift taxes. Because you have removed the property from your estate, you may also reduce your estate taxes.

How It Works

  1. Transfer title of property to Antioch College
  2. Receive income-tax deduction for fair-market value of property
  3. Antioch College may use or sell the property

Benefits

  • Income-tax deduction for fair-market value of property based on qualified appraisal
  • Avoid capital-gain tax on appreciation in value of the real estate
  • Relieved of details of selling property
  • Significant gift to Antioch College

REAL ESTATE—RETAINED LIFE ESTATE

You may give the property to Antioch College while retaining the right to occupy the residence or operate the farm. Such a gift of a remainder interest provides a charitable income-tax deduction for the present value of the remainder interest that frees up tax dollars into spendable income—without causing any disruption in your lifestyle. In addition, this plan permits you to escape any potential capital-gain tax on the built-in appreciation.

Example: Sally Holloway, 75 and recently widowed, has lived in her home for 25 years and has no plans to move. To obtain present tax relief without altering her lifestyle, she gives her home to Antioch College while retaining the right to live in the home for life.

At the time of the gift, the residence is appraised at $250,000. This gift arrangement will provide a charitable income-tax deduction of more than $179,000 (the value of the charity's remainder interest). Since Sally's tax bracket is 28%, her total tax savings will be over $50,000 (28% of $179,000). This is the amount by which her income tax will be reduced over the period she reports the deduction.

In the event she decides to move, she will have several options: rent the property, give her life interest in the home to Antioch College in exchange for a stream of payments for life, or simply give her life interest outright and receive another deduction.

How It Works

  1. Transfer title to personal residence or farm to Antioch College
  2. No change in your lifestyle—you (and spouse) occupy and enjoy residence or farm for life
  3. Antioch College keeps or sells property after your death(s)

Benefits

  • No out-of-pocket cost for substantial gift to Antioch College
  • Federal income-tax deduction for remainder value of your residence or farm
  • You (and spouse) can occupy residence for life

REAL ESTATE—BARGAIN SALE

A donor who wants to recover a portion of the value of the property that he or she wishes to contribute to Antioch College may consider entering into a bargain-sale transaction. In effect, a bargain sale is a sale of property to charity for less than its fair-market value. The bargain-sale price must be any amount mutually acceptable to the charity and the donor.

Example: John Miller, 78, owns a vacation home he no longer uses. He bought the home for $40,000 some years ago, and it is now worth $120,000. He offers to sell it to Antioch College for $40,000. As a result, he receives $40,000 from Antioch College and can deduct the contributed portion of $80,000 for income-tax purposes. John must also report a capital gain of $26,667. (The reportable capital gain is calculated by dividing the sale price of $40,000 by the fair-market value of the property—$120,000—and multiplying the result by the gain—$80,000.)

How It Works

  1. You sell property to Antioch College for less than its fair-market value—usually what you paid for it
  2. Antioch College pays you cash for agreed sale price, and you receive an income-tax deduction
  3. Antioch College may use or sell the property

Benefits

  • You receive cash from sale of property (sale price is often the original cost basis)
  • You receive a federal income-tax deduction for the difference between the sale price and the fair-market value of the property
  • Antioch College receives a valuable piece of property that we may sell or use to further our mission

Real Estate Next Steps

  1. Contact Susanne Hashim, VP of Advancement, at 937-319-0163 or shashim@antiochcollege.edu, for additional information on the possibility of giving real estate to Antioch College.
  2. Seek the advice of your financial or legal advisor.
  3. If you include Antioch College in your plans, please use our legal name and federal tax ID.
    Legal Name: Antioch College Corporation
    Address: 1 Morgan Place, Yellow Springs, OH 45387
    Federal Tax ID Number: 26-1672457 
  4. Complete and send us the Declaration of Intent Form