Real estate that is appreciated above its cost basis can offer donors wonderful opportunities for mutually beneficial gift arrangements.  It can, of course, be simply bequeathed in a will.  Or, it can be gifted to Central Oklahoma Habitat during one’s lifetime in what is called a retained life estate, by which the donor retains the right to occupy the premises during his or her lifetime while receiving a current tax benefit for the discounted remainder value.  Only after the donor’s lifetime does possession of the real estate being gifted pass to the charitable recipient.

The value of a gift of real estate is typically determined by appraisal.  If appreciated, capital gain taxes may be avoided on the real estate appreciation by donating the property to Central Oklahoma Habitat, maximizing charitable contributions, while yet preserving liquid assets for the donor's living expenses and/or benefit to heirs.

 

          Please consult your legal and/or tax professional for all determinations of value and/or tax benefit.