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With gift planning, you can provide long-lasting support for our organization while enjoying financial benefits for yourself.

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Gift Annuity for Real Estate

Gift Annuity for Real Estate

Jonathan purchased his home many years ago for $80,000. The home is now worth $420,000. Jonathan wants to sell his home and buy a condo for $130,000. If Jonathan were to sell the home and use his one-time $250,000 home exclusion, he could offset part of the gain but would still have to pay some capital gains tax.

Jonathan: My home has been a wonderful investment. My late wife and I raised our children there, but it was getting more difficult for me to keep up with the yard work. I wanted to sell my home and move to a condo. With fewer responsibilities, I would be able to spend more time with my grandkids.

Jonathan talked to an attorney at Boys Home, who told him he could sell the home, avoid the tax and make a generous gift to the charity.

Jonathan: I learned a lot from my conversation with this attorney at Boys Home. He told me I could sell my home to the charity for $130,000, which would give me the money I needed to buy the condo. The charity would take the balance of the value of my home, $290,000, to fund a charitable gift annuity that would give me both a tax deduction and provide me with fixed payments for the rest of my life.

Jonathan transferred his home to charity in exchange for this charitable gift annuity. The gift annuity produced a nice tax deduction that Jonathan used to offset the gain on the sale portion to charity. He also used the home exclusion to offset the remaining capital gains associated with the payments he received from the annuity.

Jonathan: Using my home to fund the gift annuity was the best decision I could have made. I avoided tax on the sale of my home and really enjoy the benefits of the large annuity payments. Best of all, because the payments are fixed, I don't have to worry about market fluctuations. I am tickled that I can support Boys Home in this way. When I was in the Army, I met another soldier, Keith Hansom, who grew up at Boys Home and he impressed me so much that I began supporting the Home financially and I'm so glad I did. Keith and I still keep in touch and I can't wait to tell him what I have been able to do for his "home!"

*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization.
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