REAL ESTATE

Your gift of real estate to Bais Menachem Chabad gives you many advantages. You might own property that has gone up in value over the years. If you sold it, a capital gains tax comes due. Then you only have the net amount to enjoy. A charitable gift of the property to Bais Menachem Chabad gives you a charitable deduction from your taxes for the full appreciated value of the property. And Bais Menachem Chabad gets use of that full value. It can sell it without capital gains tax, leaving more to pursue its purposes and work. So, one way to make a gift is to have your attorney create a deed transferring the property now, for the use of Bais Menachem Chabad.

If the property is your house and you want to continue to live in it, there is another way to go. Your attorney can give Bais Menachem Chabad a “remainder” interest; reserving to you a “life estate”. That remainder interest going to Bais Menachem Chabad when you are no longer here has a value now. So, you get a deduction for the value of that “remainder” while still living in your home. This can also work with investment property.

We are happy to work with your attorney and tax advisors to make these gifts work the best.