Gifts of Real Estate

A current, outright gift of real estate would allow your gift to make a difference at Berkshire School now and could generate significant tax savings. You might also consider leaving real estate to Berkshire through your will or living trust which is an efficient way to make a meaningful gift in the future without impacting your current lifestyle.

Benefits

  • One of the most flexible charitable giving options available, real estate can be used to make a gift that:
    • provides an immediate charitable deduction for the fair market value of the property while potentially avoiding capital gains taxes.
    • gives you income for life and an immediate tax deduction, while leaving the remaining assets to Berkshire after your death.
    • provides Berkshire with income for a few years, then is passed on to your heirs at the time you specify with considerable estate and gift tax savings.
    • qualifies you for a significant immediate tax deduction, allows you to use the property for your lifetime and leaves the property to Berkshire at your death.
  • The real cost of your gift is reduced, since you'll save on income and capital gains taxes by giving appreciated property to Berkshire.

How does it work?

  • You deed your home, farm, vacation home, undeveloped land or commercial building to Berkshire.
  • Berkshire sells the property and retains the proceeds.

Planning Tips

  • Gifts of real estate can be made to Berkshire by donating the entire property or a partial interest in the property.
  • With all gifts of real estate, Berkshire conducts a due diligence evaluation of the property to determine its acceptability with respect to outstanding mortgages, liens and presence of hazardous substances, as well as the marketability of the property.
  • Mortgage-free properties provide you with greater tax benefits than mortgaged properties.
  • To meet IRS requirements, you will need to obtain an appraisal from a qualified appraiser.
  • The exact tax savings depends on the type of gift and your specific situation.

Keep in mind: gifts of real estate require a qualified appraisal and can take time to complete—contact Berkshire early in your decision-making process.

Retained Life Estate

You also have the option of a Retained Life Estate. A retained life estate allows you to make a gift of a personal residence or farm to Berkshire, receive a tax deduction for a portion of your gift, and continue to use your property while you are still alive. At the end of your life, Berkshire can use the property or the proceeds from the sale of the property either for Berkshire's greatest need or for a purpose you specify.

Benefits

  • You receive a charitable income tax deduction today for a gift that will help Berkshire in the future.
  • Your estate taxes may be reduced because the property is removed from your estate.
  • Your executor's job is simplified, since your property will pass directly to Berkshire upon your death.