Gift of Residence

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.