Gifts of Real Estate

If you wish to support Habitat Greater San Francisco in a significant way, perhaps now is the time to consider a gift of real estate. There are several reasons why you might choose to do this, such as minimizing your capital gains and income taxes, or reducing excessive management issues and maintenance costs. You may also wish to convert your real estate into an income stream for your lifetime. Donating real estate is a complex issue and your financial advisor can provide assistance that is tailored to your needs. Here are some common types of real estate donations:

• Outright Gifts: The simplest way to donate real estate is by deeding clear title to Habitat free of mortgages and liens, making you eligible to take an income tax deduction based on the current fair market value of the property. You can also donate a remainder interest to Habitat so that you continue to live in or use the property for your lifetime. When the time comes to sell the property, you and Habitat then share in the proceeds based on the agreed percentages.

• Bargain Sale: You can sell your property to Habitat for less than its fair market value, thereby benefiting from income and capital gains tax savings, yet still receiving cash for personal use.

• Lifetime Income: You can generate lifetime income for yourself or your beneficiaries by transferring your property into a charitable trust with Habitat as trustee and realizing tax savings through the charitable deductions. Habitat would sell the property at market value avoiding any capital gain tax and the proceeds would be invested to generate income for you.

• Estate Planning: If you wish to retain your real estate for the duration of your life, you can provide for a real estate donation to Habitat in your will - thus making an important long-term commitment to Habitat, while keeping your options open should your circumstances change.

Habitat Greater San Francisco does not advise on any personal income tax requirements or issues. Use of any information from this brochure is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional assistance.