- Benefits Income Tax deduction for the charitable contribution
- No capital gains tax on the appreciation in value
- No second tax on accumulated earnings by averting a dividend distribution
- You maintain control
Explained: Let’s assume you like the tax advantages that a charitable gift of real estate would offer, but you want to continue living in your personal residence for your lifetime. Did you realize you can give us your home, even though you continue living there?
It’s true. It’s called a retained life estate.
A gift of your home, farm, vacation home, or condominium, even with stipulations about occupancy, results in a charitable deduction on your income tax.
The retained life estate also provides you with a way to let someone other than you or your spouse have life occupancy of your home without the associated estate tax payments.