Want to make a big gift to Rensselaer Polytechnic Institute without touching your bank account? Consider giving us real estate. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give us appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction. You avoid paying capital gains tax. And you no longer have to deal with that property's maintenance costs, property taxes or insurance.
Another benefit: You don't have to hassle with selling the real estate. You can deed the property directly to Rensselaer or ask your attorney to add a few sentences in your will or trust agreement.
Ways to Give Real Estate
You can give real estate to Rensselaer in the following ways:
When you make a gift today of real estate you have owned longer than one year, you qualify for a federal income tax charitable deduction equal to the property's full fair market value. This deduction lets you reduce the cost of making the gift and frees cash that otherwise would have been used to pay taxes. By donating the property to us, you also eliminate capital gains tax on its appreciation.
A gift of real estate through your will or living trust allows you the flexibility to change your mind and the potential to support our work with a larger gift than you could during your lifetime. In as little as one sentence or two, you can ensure that your support for Rensselaer continues after your lifetime.
Perhaps you like the tax advantages a gift of real estate to our organization would offer, but you want to continue living in your personal residence for your lifetime. You can transfer your personal residence or farm to Rensselaer but keep the right to occupy (or rent out) the home for the rest of your life. You continue to pay real estate taxes, maintenance fees and insurance on the property. Even though Rensselaer would not actually take possession of the residence until after your lifetime, since your gift cannot be revoked, you qualify for a federal income tax charitable deduction for a portion of your home's value.
You can contribute any type of appreciated real estate you've owned for more than one year, provided it's unmortgaged, in exchange for an income stream for life or a term of up to 20 years. The donated property may be a residence (a personal residence must be vacant upon contribution), undeveloped land, a farm or commercial property. Real estate works well with only certain variations of charitable remainder trusts. Your estate planning attorney, who will draft your trust, can give you more details.
This gift can be a wonderful way for you to benefit Rensselaer and simultaneously transfer appreciated real estate to your family tax-free. You should consider funding the charitable lead trust with real estate that is income-producing and expected to increase in value over the term of the trust.
A gift of real estate may be a perfect way to honor your loved one in perpetuity. When you make an endowed gift of real estate, your contribution is invested with and becomes part of our endowment. An annual distribution is made for the purpose you designate. Because the principal remains intact, the fund will generate support in perpetuity.
Check Out This Real Life Scenario
When Judy and Tom McClintock ’47 retired to Colorado to be closer to their children, they decided it was time to let go of their beautiful second home in the Adirondack Mountains. They donated the property to a charitable remainder unitrust at Rensselaer and the Institute sold the property for them. They now receive lifetime payments equal to 5% of the trust’s value, as revalued annually. Their payments totaled $25,138 in 2014. They also earned a deduction that saved them more than $150,000 in federal income taxes over a 6 year period. The remainder of their trust will permanently fund the McClintock Scholarship at Rensselaer for engineering and science students.
Make a Gift Today
Learn more about the many ways to use real estate to support Rensselaer Polytechnic Institute in the FREE guide 6 Ways to Donate Real Estate.View My Guide
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Plan for Retirement With a Deferred Gift Annuity.
Not Sure How to Begin Planning?
Download our FREE Personal Estate Planning KitDownload our FREE Personal Estate Planning Kit
- Contact Art Tracy '92 MS at 518-276-2561 or email@example.com to discuss the possibility of giving real estate to Rensselaer.
- Seek the advice of your financial or legal advisor to make sure this gift fits your goals.
- If you include Rensselaer in your plans, please use our legal name and Federal Tax ID.
Legal Name: Rensselaer Polytechnic Institute
Address: 110 8th St., Troy, NY 12180-3590
Federal Tax ID Number: 14-1340095
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.