Page 27 - AMM-JAN2022-1

AVOID CAPITAL GAINS TAX WHEN SELLING YOUR REAL ESTATE
Consider a Charitable Trust with City of Hope if you would like to ...
• Sell your property and avoid capital gains tax on the transfer
• Receive lifetime income for yourself and/or other beneficiaries, including adult children
• Retire from being a landlord
• Avoid the need for a 1031 exchange
• Make a difference in the lives of people with cancer, diabetes and other serious illnesses
To learn more, contact Michael Rorman, senior executive director, Planned Giving, at 800-232-3314 or plannedgiving@coh.org.
cityofhope
EXAMPLE:
INCOME AND TAX DEDUCTION FROM DONATED REAL ESTATE
APARTMENT BUILDING OUTRIGHT SALE
APARTMENT BUILDING CHARITABLE TRUST
Sale/Transfer Proceeds $2,600,000 $2,600,000
Sales Cost (6%)
-$156,000 -$156,000
Net Proceeds
$2,444,000 $2,444,000
Estimated Capital Gains Taxes
-$574,774* N/A
Total Amount to Invest
$1,869,226 $2,444,000
Charitable Income Tax Deduction
N/A $1,498,146**
Estimated Net Annual Income
$102,807 $134,420***
*Estimated blended Federal/California Long-Term Capital Gains Tax Rate of 33.93%. Assumes cost basis of $750,000. **Based on a donor age of 75. The unused
portion of this deduction can be carried forward for an additional five years. ***This illustration reflects a charitable trust that pays 5.5% of its annual value each year.
CityofHope.org
APARTMENT MANAGEMENT MAGAZINE - JANUARY 2022 CS-5