Gifts of real estate offer an easy and tax-efficient way to make a lasting contribution to Labouré. Your gift will help to sustain the mission of Labouré while avoiding capital gain tax and reducing federal income tax.
In general, when a person sells an appreciated asset, he or she must recognize capital gain on the sale of such property. For example: let’s say you purchased a $100,000 home, which is now worth $200,000. If you sold the house, you would generally be required to pay taxes on the increased value of the house. If instead you gift the property to Labouré you will avoid the tax on the increased value of the house, and also be able to take a charitable deduction of $200,000 on your federal income tax return, saving the money you would have been required to pay in taxes on the $100,000 increase in the value of the home. You would also save in state taxes as well. Essentially you would be making a $200,000 gift to Labouré – one that would “cost” you roughly $100,000 to do.
To ensure that you are entitled to receive the most beneficial tax treatment, please contact us or a tax advisor before you sell your stock or real estate.