You may give the property to the Archdiocese while retaining the right to occupy the residence or operate the farm. Such a gift of a remainder interest provides a charitable income-tax deduction for the present value of the remainder interest that frees up tax dollars into spendable income—without causing any disruption in your lifestyle. In addition, this plan permits you to escape any potential capital-gain tax on the built-in appreciation.
Example: Amy, 75 and recently widowed, has lived in her home for 25 years and has no plans to move. To obtain present tax relief without altering her lifestyle, she gives her home to the Archdiocese while retaining the right to live in the home for life.
At the time of the gift, the residence is appraised at $250,000. This gift arrangement will provide a charitable income-tax deduction of more than $179,000 (the value of the charity’s remainder interest). Since Amy’s tax bracket is 24%, her total tax savings will be almost $43,000 (24% of $179,000). This is the amount by which her income tax will be reduced over the period she reports the deduction.
In the event she decides to move, she will have several options: rent the property, give her life interest in the home to the Archdiocese in exchange for a stream of payments for life, or simply give her life interest outright and receive another deduction.
How It Works
- Transfer title to personal residence or farm to the Archdiocese
- No change in your lifestyle—you (and spouse) occupy and enjoy residence or farm for life
- The Archdiocese keeps or sells property after your death(s)
- No out-of-pocket cost for substantial gift to the Archdiocese
- Federal income-tax deduction for remainder value of your residence or farm
- You (and spouse) can occupy residence for life
- Request an eBrochure: Request an eBrochure with more information about this gift.
- Which Gift Is Right for You? Find out which gifts match you best with our Life Stage Gift Planner™.
|Planned Giving Office|
|Archdiocese of New York|
1011 First Avenue
New York, NY 10022
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