Property owners of Colorado Springs homes and land might want to consider donating their Colorado Springs real estate to charitable organizations. Owners may be interested in charitable giving if they hold homes in Colorado Springs which lack positive cash flow, idle properties, or fully depreciated properties. In addition to significant financial benefits, the donor helps to improve life in Colorado Springs.
A donation of real estate Colorado Springs reduces legal and tax liabilities for property owners. Benefits accrue as owners rid their portfolios of non-producing properties, while at the same time they avoid capital gains taxes on properties that have appreciated greatly. Some property owners go this route to avoid property taxes, maintenance costs, income taxes, legal fees, brokerage fees, estate taxes, and/or inheritance taxes.
Senior citizens may also consider utilizing a life estate to donate their Colorado Springs Colorado homes to charity. With a life estate, the owners may remain in the home and receive a charitable tax deduction, with the understanding that the title will transfer to a specified charity when they pass on. Sometimes they opt for a lifetime annuity. Many options eliminate the need for heirs to pay ongoing maintenance costs and property taxes.
Any type of real estate can be donated to a qualified charitable organization. Donate for a Cause is a Montana nonprofit that brokers timeshares for charities.The New York Times newspaper ran the story of a couple in their 80s who donated their shopping center to charity. The charity sold the property for $1.1 million and the family receives $6,400 monthly income and significant tax savings.
Estate planners can structure the donation to provide tax benefits and income. Baby boomers who have inherited homes, vacant land, or commercial property as well as those who own second homes may be interested in converting their donations into an income stream. A predetermined annuity of at least five percent annually of a property’s fair-market value can come in pretty handy during retirement.
Donors not connected to a particular charity can employ a donor-advised fund. These funds are sponsored by many big-name investment companies, universities and relief organizations.
The options available to property owners are many and varied and sometimes complex. The flexibility allows donors to do part sale and part gift or part trust and part annuity, etc. Therefore we heartily recommend speaking with professionals who fully understand philanthropy law.
For information about buying or selling homes and land, contact top local real estate agent Ann Heiring of Colorado Springs REMAX at (719) 440-1010 or Toll Free at (800) 246-8978 to learn how our acclaimed city can work hand in glove to help you achieve your lifetime goals. In appreciation for those who serve our nation, Ann offers rebates for active and retired military.