CHARITABLE GIVING REAL ESTATE
While the donation of appreciated securities such as stocks, bonds and mutual funds, is common, relatively few individuals donate real estate to charity. Under specific circumstances, however, such a donation can be mutually advantageous to both the giver (the owner of the real estate) and the recipient (the charitable organization). The donation of commercial or industrial real estate is also possible, but brings many other potential concerns, including possible tenant or lease issues and other legal complications.
Surprisingly, there is a little-known alternative to not only give to a good cause, but also resolve financial issues that many people and entities in the equestrian community are constantly facing.
Why little-known? Simply because of a lack of exposure, knowledge, fear of change, or just the apparent complexity of this approach. Nevertheless, hundreds of millions of dollars worth of real estate is transferred in this manner every year, in what is known as a win-win-win-win environment.
FEA has developed a system that is unique and proprietary, now available to all FEA supporters.
• CASE STUDY
Here is an example of an ideal scenario: A couple who bought their house 30 years ago for $350,000 now see its appreciation reach a current valuation of $1.8 million. They finished paying off their mortgage a few years ago, and their two children have grown and started their own families. The couple considers selling their home and donating the profit to one of the charities they like. Their financial adviser informs them that the direct donation of the home to a public charity would allow them to take a full, fair-market value tax deduction while eliminating the substantial capital gains tax they would incur if they sold the property first and then donated the proceeds. This two-pronged tax benefit is possible with the donation of personal non-cash assets, be it public or private stock, bonds or real estate, and makes the donation of such assets to public charities very attractive for donors. The donors we also informed that if the same property was instead transferred to a private foundation, in most instances the charitable tax deduction would be limited to the donors’ basis in the property.
FEA is to become the perfect facilitator between the well-intended givers and the right charities in order to ensure the property(ies) is/are used for the intended purpose.
• FEA'S INVOLVEMENT
What FEA does: review the overall situation, consider the desired end-result desired by the donor, propose options, help determine the best courses of action to meet the objectives, facilitate the transfer process, establish and follow a short term and a long term plan of action acceptable to the donor.
Because the nature of such transactions potentially requires certain state and federal licensing and approval, we ask that interested parties communicate with us directly until we finalize the formatting of the information to make it available on this website.
Our team of experts has already processed millions of dollars worth of charitable giving real estate transactions so please do not hesitate to contact us for more information and a totally free, no-obligation analysis.
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