Gifts of Real Estate & Business Interests

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Gifts of Real Estate & Business Interests

There are many ways to support MedShare beyond a direct cash donation, Gifts of Real Estate and Gifts of Business Interests benefit both MedShare and the donor as well.

 

Gift of Real Estate

Almost any type of real estate may be donated to MedShare, including a personal residence, vacation residence, commercial buildings, undeveloped land, and farms. Giving a gift of real estate can be a highly effective philanthropic and financial planning strategy.

 

Gifts of real estate may provide significant benefits for the donor as well as MedShare. Depending upon the type of gift, a donor may enjoy tax savings, lifetime income payment and freedom from carrying costs once the property is sold, and remove the property from his/her taxable estate.

 

How it Works

If an outright gift of real estate is made to MedShare, the donor:
  1. 1. Transfers title of the property to MedShare
  2. 2. Receives income tax deduction for fair-market value of the property
  3. 3. MedShare may use or sell the property with proceeds providing much needed funding or establishing an endowment of one of MedShare’s critical programs or container shipments
  4. 4. The donor receives a charitable income-tax deduction for the full fair-market value of the unencumbered real estate. The donor may apply the deduction up to 30% of donor’s adjusted gross income –in the year of the gift– with the five year carryover provision. The donor avoids capital-gain tax on the appreciation in the property and there are no gift taxes. Because the donor has removed the property from his/her estate, the donor also reduces estate taxes.

 

             Benefits
  1. 1. Income-tax deduction for the fair-market value of property based on qualified appraisal
  2. 2. Avoid capital gains tax on appreciation in value of the real estate
  3. 3. Relieved of details, costs and other expenses of selling the property
  4. 4. Significant planned gift to MedShare.

 

 

If a Gift of Personal Residence or Farm with Retained List Estate is made, the donor:
  1. 1. Transfers title to personal residence or farm to MedShare
  2. 2. No change in the donor’s lifestyle — the donor (and spouse) occupy and enjoy residence or farm for life
  3. 3. MedShare keeps or sells the property after the death(s) of donors

 

             Benefits
  1. 1. No out-of-pocket cost for substantial gift to MedShare
  2. 2. Donor receives current federal income-tax deduction for remainder value of the donor’s residence or farm
  3. 3. Donor (and spouse) occupy residence/property for life
  4. 4. The property that is donated to MedShare is removed from the donor’s taxable estate

 

 

For more information about Gifts of Real Estate, please contact Chief Development Officer, Sue Brandt.
Email Sue: sbrandt@medshare.org
Call: 770-323-5858

 

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Gifts of Business Interests

As a business owner, you have the opportunity to not only build your business and accumulate wealth for yourself and your family, but also to accomplish your philanthropic goals and objectives through charitable gift planning. A gift of your corporate stock or assets can provide you with tax and income benefits and also help MedShare to further our mission. Benefits of gifts of business interests including closely held stock and other business assets including non-inventory assets are as follows:

 

Benefits of gifts of business interests
  • You receive a charitable income tax deduction
  • You avoid tax on the sale of your business stock or assets
  • You can receive lifetime payments if your business stock or assets are used to fund a planned gift to MedShare

 

How gifts of closely held stock work
  1. 1. Give a percentage of your voting or non-voting shares in your business to MedShare outright and receive an income tax deduction. We will hold your shares for future sale or redemption and can use any dividends paid for MedShare’s charitable purposes.
  2. 2. If your corporation is an S corporation, there are special rules that apply to gifts of corporate stock. Please contact us to discuss the most tax-efficient way to structure your stock gift.

 

How Gifts of Business Assets Work
  1. 1. If your business makes a gift of a non-inventory asset, it will receive a charitable income tax deduction based on the appraised fair market value of the asset.
  2. 2. The income tax deduction for a gift from a business is limited to 10% of the corporation’s taxable income. Your business may carry forward any unused deduction up to five years.
  1. 3. If your business is an S corporation and you make a gift of a business asset, the charitable deduction will flow through to the shareholders in proportion to their ownership interest. Check with us on the most tax-efficient way to make a gift of corporate assets from your business.

 

Please Note: The discussion herein is general in nature and intended to provide examples of charitable giving strategies. Prospective donors are encouraged to consult their personal tax, financial and legal advisors concerning the specific consequences of making gifts to MedShare. We would be pleased to discuss, in confidence, ways in which you may support MedShare in an impactful manner. These strategies may also have an impact on your estate planning.

 

For more information about Gifts of Business Interests, please contact Chief Development Officer, Sue Brandt.
Email Sue: sbrandt@medshare.org
Call: 770-323-5858