Using Real Estate to make a gift allows you to turn an asset into support for students and faculty at Carleton, receive a charitable income tax deduction, and avoid paying capital gains taxes.
The real cost of your gift is reduced, since you’ll save on income and capital gains taxes by giving appreciated property to Carleton.
You can use real estate to make a variety of different types of gifts, including:
An outright gift that gives you a charitable deduction for the fair market value of the property while potentially avoiding capital gains taxes.
An outright gift that also gives you some cash back.
A gift that gives you income and an immediate tax deduction, while leaving the assets to Carleton.
A gift that gives you a sizeable tax deduction today and allows you to use the property for your lifetime, while leaving the property to Carleton at your death.
You can designate your gift to start an endowed fund or to support a particular project.
Carleton can use the property or the proceeds from the sale of the property-either for the endowment or for a purpose you specify. The full value of your gift benefits Carleton — as a tax-exempt organization, Carleton doesn’t have to pay capital gains tax on appreciated property.
If you are planning to sell or transfer property in the near future, contact us to discuss creative ideas to minimize your transfer taxes and make a gift to Carleton.
Gifts of real estate can be made either with the entire parcel or by giving Carleton a partial interest in the property.
Mortgage-free properties provide you with greater tax benefits than mortgaged properties.
Gifts of real estate require a qualified appraisal and can take time to complete — contact Carleton early in your decision making process.
You may need to provide the following information:
Legal name: Carleton College
Address: One North College Street, Northfield, MN 55057
A Retained Life Estate allows you to make a gift of a farm or personal residence to Carleton, receive a tax deduction for a portion of your gift, and continue to use your property while you are still alive. The suggested minimum for establishing a gift with a retained life estate at Carleton is $100,000.
You receive a charitable income tax deduction today for a gift that will help Carleton in the future.
Your estate taxes may be reduced because the property is removed from your estate.
Your executor’s job is simplified, since your property will pass directly to Carleton upon your death.
At the end of the your life, Carleton can use the property or the proceeds from the sale of the property — either for the endowment or for a purpose you specify.
Already know when you’d like to downsize? A retained life estate can be set for a term of years specified by you.
If you decide to leave your property before the term of the gift is complete, you may:
rent the property to someone else
sell it in cooperation with Carleton
receive an additional deduction
During the term of the gift you will continue to be responsible for all regular expenses of maintaining the property, including taxes and repairs.
A gift of a retained life estate can be made either with the entire property or by giving Carleton a partial interest in the property.
Gifts of real estate require a qualified appraisal and can take some time to complete — contact us early in your decision-making process.
