Saratoga Federated Foundation
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| Real estate is one of the most widely-held assets - a personal
residence, mountain cottage, beach home, vacation condo, commercial
buildings or land. It's a logical choice for many who wish to make a
donation to Saratoga Federated Church. |
Features and Benefits of Making Gifts
of Real Property
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| Charitable deduction |
| For federal income tax purposes, the value of
your charitable deduction for a gift of real estate to SFC of
real estate you've owned for more than one year is the full
fair market value of that real estate on the date you gift it. |
| Avoids Capital Gains Tax |
| If the fair market value of gifted real estate
is greater than your cost basis in that real estate, then by
gifting it to SFC you also avoid capital gains tax that would
have been levied against such increase in value had you sold
the real estate yourself and realized that gain. Estate tax
savings as well as avoiding probate are other possible
benefits. |
| Deductibility |
| Gifts of real estate held for more than one
year are deductible up to 30% of your federal adjusted gross
income for the year - and if your gift exceeds that 30%, then
you may deduct the excess over the following five years, again
up to 30% of your adjusted gross income for each carry-over
year. |
| Appraisal requirements |
| If the value of your charitable deduction for
your gift of real estate is greater than $500, your income tax
return must be accompanied by a completed federal Form
8283/Noncash Charitable Contributions detailing your gift of
real estate. If the value of such charitable contribution is
greater than $5,000, you must obtain an independent qualified
appraisal of your gifted real estate to accompany your Form
8283 in order to substantiate your income tax deduction -
we'll help you get one. |
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About Inspections Before the Gift
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| SFC is not exempt from environmental laws and regulations
governing real estate. So, before we may accept any gift of real
estate, we must inspect the real estate you wish to donate so that
we are satisfied that no potential violations of environmental laws
and regulations are present. |
How It's Done
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| A gift of real estate is made when you execute and deliver to SFC
Foundation a deed to that real estate - we can help you prepare one
and we can take care of recording the deed. |
Deeding just a remainder interest to
SFC Foundation
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| One of the best ways to generate a large current income tax
charitable deduction for yourself - while still retaining complete
control and custody of your real estate during your lifetime is to
deed a remainder trust to SFC Foundation in your personal residence,
vacation home or other real estate. For more information on this
type of giving, please contact one of the Foundation members at the
links above. |
An Example
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John and Mary Smith bought a vacation home 20 years ago for
$100,000. They no longer use it and wish to donate it to their
church. The home has grown in value to $350,000. If they sell their
home outright and then make a gift, they will owe up to a 20 percent
capital gains tax on the $250,000 appreciation, or $50,000.
If the Smiths choose to give their home to their church, they will
receive the following benefits:
- $350,000 tax deduction
- Bypass the federal capital gains tax
- Provide long-term support for SFC's ministry
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Contact
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Accounting Manager
Saratoga Federated Church
14370 Saratoga Avenue
Saratoga, CA 95070
Phone: (408)867-1000 x241
FAX: (408)867-6012 |
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