Real Estate Can Make a Significant Impact
An asset that’s been in your family for generations can serve as a gift to future generations of students. By donating all or part of your property to Merrimack College, you may be able to reduce your capital gains tax, receive an income tax deduction, and secure income for life—and you may even be able to continue to use or live on the property. Most importantly, your generous gift will support Merrimack College’s mission, contributing to the advancement of higher education.
How it Works
There are various ways to use your real estate to support the mission of Merrimack College while also furthering your financial goals.
- Save on Taxes:Â Donate your property outright. Merrimack College will sell it and use the proceeds to support educational initiatives and research. You will receive a tax deduction for the full value of the property and could avoid paying capital gains tax.
- Receive Income: Use your property to fund a gift that provides you with income. You’ll qualify for a charitable income tax deduction for part of the value of the property and receive income for life (or a term of years) for yourself and/or a beneficiary. Your gift will help foster higher education and innovation in the future.
- Stay in Your Home:Â By creating a retained life estate, you can donate your home and continue to live there (it does not have to be your principal residence). You will receive an immediate tax deduction. At the end of your tenancy, Merrimack College will sell the property and use the proceeds to support higher education.
- Make a Gift in Your Will or Trust:Â Maintain control of your property by making a gift through your will or trust. You can change your mind or alter your gift at any time. Ultimately, Merrimack College will use your gift to support education and research for future generations.
- Undivided Interest Gifts: An income tax charitable deduction is allowed for a transfer of a partial interest if that interest is an undivided portion of the donor’s entire interest in the property. A donor can gift an interest in their property to Merrimack College and then, together as co-owners, sell the property to a third party. The donor and Merrimack College both benefit from the proceeds of the sale to the third-party buyer.
How You Benefit
There are various ways to utilize your real estate to support the educational mission of Merrimack College while simultaneously advancing your financial goals.
- You might be eligible for an income tax deduction for the fair market value of your property, reducing your tax liability.
- You can potentially reduce or even eliminate capital gains taxes owed on your property, providing you with further financial benefits.
- You may use your property to establish a gift that will provide you with a lifetime income, ensuring financial security.
- Lastly, your ownership responsibilities are eliminated, freeing you from the tasks and expenses associated with property maintenance.
Can it Work for You?
A gift of real estate may be the right choice for you if:
- You own residential, commercial, or undeveloped real estate that has appreciated in value and that you no longer wish to maintain.
- You are worried about escalating real estate taxes and the capital gains expense associated with selling the property.
- The property can contribute to Merrimack College’s mission of fostering education and research or is readily marketable, and it poses no environmental concerns.
