Originally posted to the web in News, on Wednesday, February 28, 2007 5:11 PM CST.
Take a tax write-off and help the Humane Society
By Marianne Swanston
Humane Society of Wickenburg
With tax time looming, who doesn't need a tax write-off?
The Humane Society of Wickenburg (HSoW) is a 501(c)3 organization in need of land to build a state-of-the-art shelter. If anyone needs to divest his or her portfolio or receive instant tax rewards, consider a real estate donation to the HSOW by contacting 684-8801 or P.O. Box 147, Wickenburg, 85358.
The Humane Society needs community assistance in rescuing animals off the street and into safe, temporary homes. Perhaps the Society can assist in a tax situation and the taxpayer can feel good about giving back to the community.
When making a donation to a charitable organization, donating real estate can provide the greatest tax benefits, allowing significant charitable goals, minimizing taxes and providing an immediate income tax deduction.
Individuals can also make a gift of real estate through a will or living trust to avoid potential future estate taxes. Even though the stock market has rebounded, real estate has seen the greatest appreciation over the past ten years and often is the wisest choice for charitable giving.
There are many reasons why donating real estate are beneficial options in a gifting plan, including:
-Maximum tax deduction allowed by law;
-Avoidance of capital gains tax on highly appreciated properties,
-Avoidance of expense and inconvenience of marketing,
-Elimination of legal and tax liabilities,
-Attaining financial goals while also supporting a great charity,
-Diversification of assets and establishment of tax credit.
If property has been owned for more than one year and is no longer beneficial, such as fully depreciated, and an immediate tax credit can be used, perhaps one should consider a gift of real estate to accomplish a charitable goal, while enjoying the many rewards of philanthropy.
As an individual, the amount of a charitable deduction is the fair market value at the time of contribution. A deduction is limited to 30 percent of the individual's adjusted gross income.
If one elects to deduct the cost basis, he or she is allowed 50 percent of his or her adjusted gross income. As a corporate donor, the corporation can deduct up to 10 percent of its net profit. Excess contribution amounts can be carried forward up to five years.
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