Outright Gifts
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Giving || Cash/Check
|| Appreciated
Securities
Real Estate
||
Gift of Residence
Immediately assists UNA programs and deductible up to 50% of an
individual's adjusted gross income.
Deduction for the full fair market value of the securities on the date
of the gift. With outright gifts, donor avoids taxes on capital gains.
Example: Donor purchased stock five years ago for $5,000 which has appreciated since
that time to $15,000. If donor sells stock, he/she will have to pay capital gains taxes of
28% of $10,000. By donating the stock to the UNA Foundation, capital gains and estate
taxes are avoided, and donor receives a $15,000 tax deduction up to a maximum of 30% of
his/her adjusted gross income.
Return to "Making Gifts"
REAL ESTATE
(Includes farms, land, second homes, investment properties)
Appreciated real estate is best to give because capital gain is avoided.
Federal income tax deduction in the year the gift is made for the entire fair market value
of the real estate (subject to 30% of donor's adjusted gross income - any
"excess" can be carried over for up to five years). Also the of donor's taxable
estate is reduced.
Example: Donor purchased undeveloped land some years ago as an investment for
$10,000. Today it is worth $100,000. If donor sells land, he/she is liable for the capital
gains tax due on the $90,000 gain. The 28% federal income tax on capital gains will be
$25,200 (there could be state income tax on the capital gains as well). By donating the
land to the UNA Foundation, donor can claim a $100,000 charitable deduction. Assuming
donor has adjusted gross income for the year of $140,000, he/she may claim $42,000
($140,000 X 30%) as a deduction this year and can claim the balance over the next five
years. Assuming donor is in a 36% federal income tax bracket, his deduction saves him
$15,120 ($42,000 X 36%) in federal taxes this year.
Return to "Making Gifts"
Donor gives his/her personal residence to a charitable
organization and continues to reside on and use the property for life and/or the life of
another beneficiary who survives the donor.
Donor is entitled to a charitable income tax deduction in the year in
which the property is transferred to the UNA Foundation. The amount of the deduction is
less than the fair market value of the property since the donor can still use it.
Computation of deduction involves calculation to determine the actuarial value of the
donor's retained interest. These figures are obtained by using government tables.
Example: Donor has lived in own home for 35 years. Donor gives home to UNA
Foundation, subject to the right to live there during his/her lifetime. Based on donor's
age and an assumed property value of $90,000, donor is entitled to a charitable income tax
deduction of $30,000 this year. If donor is in the 28% income tax bracket, this saves
him/her $8,400 in income taxes.
Return to "Making Gifts"
Online
Giving || Cash/Check
|| Appreciated
Securities || Real Estate
Gift of Residence
Donate
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