Gifts of Real Estate
Gifts of property are typically handled on a gift by gift basis. A qualified appraisal is needed to determine your tax deduction. There is a variety of ways to structure your real estate gift such as an outright gift, as a remainder interest in your residence, or as a bargain sale. The amount of your immediate charitable income tax deduction will vary depending on which gift option you select. Real estate can also be used to fund a gift that provides you with income for life.
Your gift of real estate can be given outright while you are living or through your will.
Remainder Interest in Your Residence
You can gift your personal residence or vacation home to AHF, retain a life interest while granting a remainder interest to Abington Memorial Hospital Foundation. In this case, you or anyone you designate may continue to use the property for life. Your charitable tax deduction will be based on the value of Abington Memorial Hospital or Lansdale Hospital's future interest in the property, estimated to be the difference between the appraised value and the value of your retained life interest.
Through a bargain sale, you sell your property to Abington Health at less than its full market value. You then receive a charitable tax deduction for the difference between the sale price and the appraised market value of the property. Proceeds from the sale are considered to be part tax-free return of investment and part capital gain.
Your primary or vacation home can be gifted to provide income to you and perhaps a second individual for life. You receive a partial income tax deduction based on the value of the property, your age(s), and IRS tables. Please contact our Development Officers to learn more about how to convert a home to income.