Real Estate and Properties
Real Estate Gifts ProgramUniversity Condominiums
What if you could use an asset such as your home to create a regular income, reduce your taxes and gain the satisfaction of making a sizable gift to Anderson University?
You can realize all of these important goals through a new and innovative planned giving arrangement – the Anderson University Real Estate Gifts Program.
Anderson University Real Estate Gifts Program
Through the Anderson University Real Estate Gifts Program, you may now transfer real property to Anderson University and create a guaranteed source of income for your lifetime or for a specific number of years. This is a rewarding way to make a sizable gift to the university – one that otherwise might not be possible and, in most cases, receive significant tax savings. As one donor stated, "Anderson University has found a plan through which the average person can support the school in a meaningful way."Real Advantages
- You avoid the process and stress associated with selling a home.
- You give your home in a completely private and confidential manner.
- You pay no closing costs, brokerage commissions or points. Anderson University handles all the details and makes the process simple for you.
- You may elect to receive Life Income or Term Income payments.
By selecting Life Income, you will receive payments throughout your lifetime. Or, if you prefer, you may receive payments for your lifetime and the lifetime of your spouse.
A Real Example
John and Mary W., both age 72, own a home worth $100,000. They would like to transfer it to Anderson University through the real estate gifts program and receive the present value of the home over a period of years. They would also like for the payments to continue to the beneficiaries of their estate should they die before all payments are made.After conferring with our staff and their advisors, John and Mary agree on a plan that will pay them $100,000 over the next 15 years in monthly payments of $556. Here are the results:
Because their payments are based on an installment bargain sale of their property of $60,000, John and Mary are entitled to an immediate income tax deduction of $40,000.
In most cases, they will be able to exclude from taxation any capital gains on the sale of the residence. Even if they do have to recognize some gain, the amount will be be reduced and spread over the life of the payments they receive.
Part of the payments will be treated as a tax-free return of principal, and because the interest accrues on the unpaid balance, part of the payment will be interest that is taxed at ordinary income rates.
John and Mary have the satisfaction of making a gift of $40,000 to Anderson University, and peace of mind knowing that payments will continue to their beneficiaries should they die before the payments are completed.
(NOTE: The calculations in this example are based on a representative interest rate. The actual interest rate varies with the changing market conditions.)
Real Benefits
- Anderson University will assist you in arranging for an appraisal of your home. If you choose to proceed, AU will pay for the appraisal fee. If you choose not to proceed, you will assume responsibility for the fee. (Note: Payment of the fee by Anderson University may have income tax consequences for you.)
- You select the closing date. The closing must occur within 60 days of the appraisal.
- You and your spouse select either Term Income for Life Income. Life Income payments may vary depending on age, property value and other factors.
- All closing costs, other than carrying expenses and utilities prior to closing, are paid by the university. If inspections indicate the need for repairs, they will be paid for by the seller.
- You should be eligible to use a significant income tax deduction on your federal income tax return.
- Generally, you will pay no tax on capital gain on your residence. If you do have to recognize gain, you may be able to reduce your tax.
- You have the satisfaction of making a significant contribution to Anderson University.
University Condominiums
Through a truly remarkable, and unique real estate gifts program you can make your home in one of our beautiful condominium communities, and make a generous gift to Anderson University.Want to know more?
