The Justice Love FoundationIncrease your gift to the Foundation—and your tax deduction—with a simple strategy. Contact our Team for additional assistance.
Donating Residential and Real Estate to The Justice Love Foundation
How to increase your gift to charity by donating real estate directly
Before You Sell Your Real Estate
When you decide to sell residential real estate and donate the net proceeds to charity, consider donating that property directly to a charity for two major benefits:
- A potential income tax charitable deduction for the fair market value.
- A greater gift to charity—charities don’t pay capital gains taxes, so the full value of your gift goes to causes you care about.
And there’s a third benefit of donating real estate to the Justice Love Foundation—the opportunity to recommend how the contribution is invested on a tax-free basis, potentially increasing the amount of charitable support over time.
Fair market value of the property, as determined by a qualified independent appraisal.
How does it work?
The Justice Love Foundation is a 501(c)(3) public charity. When you make a contribution of real estate to the Foundation, you won’t have capital gains exposure because you’re gifting—not selling—the property; this means your charitable gift, and your tax deduction as well, may be over 20% higher. The Foundation’s net proceeds from the sale of the real estate are allocated to our Endowment. You can recommend how the amount is invested, with the potential of tax-free growth to increase support for charities over time.
This assumes all realized gains are subject to the maximum federal long-term capital gains tax rate of 20% and the Medicare surtax of 3.8%, and that the donor originally planned to sell the property and contribute the net proceeds (less the capital gains tax and Medicare surtax) to charity.
The property included in this example is not considered a personal residence for tax purposes. Assumes no unrelated business taxable income (UBTI) and top ordinary income tax rate of 37% for valuing charitable deduction. The fair market value is as determined by a qualified independent appraisal.
Considerations for Donating Real Estate
The property must be “highly marketable” and ideally will be highly appreciated.
While the Foundation will consider investment property with an income stream, the Foundation’s due diligence process for investment property is considerably more involved. he property generally must be debt-free. The individual must be willing to irrevocably transfer the property to the Foundation, which will exclusively control the sale, including negotiating the sale price.
This assumes all realized gains are subject to the maximum federal long-term capital gains tax rate of 20% and the Medicare surtax of 3.8%. This does not take into account state or local taxes, if any. And, the amount of the proposed donation is the fair market value of the appreciated securities held more than one year that you are considering to donate.
Potential benefits of giving real estate directly to the Foundation:
- Make a larger charitable contribution
- Eliminate capital gains tax exposure
- Take a fair market value tax deduction
Let Our Donations Team Assist with a Plan
Nearly half of high-net-worth donors do not take advantage of tax-saving methods that could help them save and give more. Let our Donations Team help you with the opportunity to position yourself by having a quick conversation on the best structure for charitable giving to the Foundation. Please take your time and submit your questions below, we will respond as quickly as possible.
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