Did you know there is an IRS approved way to unlock your property’s value, bypass capital gains tax on the sale and secure lifetime income for yourself and/or loved one(s)? As an owner of real estate — whether a primary residence, vacation home, investment property, farm or undeveloped land — selling it likely comes with a significant tax burden.
By making a gift of real estate to a charitable remainder trust that benefits you during your lifetime and then afterwards, a nonprofit organization like City of Hope®, you can:
• Sell your property and bypass capital gains tax on the sale.
• Receive lifetime income for yourself and/or loved ones.
• Receive an immediate income tax deduction.
• Save lives from cancer, diabetes and other serious illnesses.
There are flexible gift options to fit your financial goals and family needs. Your gift will also fuel City of Hope’s mission to provide leading-edge cancer research, treatment and hope for patients and families.
About City of Hope
City of Hope is one of the largest and most advanced cancer research and treatment organizations in the United States, with a 100+ year legacy and City of Hope’s National Medical Center in Los Angeles has been recognized as a Top 5 “Best Hospital” for cancer in the nation, according to U.S. News & World Report’s 2024-25 rankings.
Income and Tax Deduction From Donated Real Estate Example:
| Apartment Building Rental Income | Apartment Building Outright Sale | Apartment Building Charitable Trust | |
|---|---|---|---|
| Sales Price | - | $2,500,000 | $2,500,000 |
| Sales Cost | - | ($107,500) | ($107,500) |
| Net Proceeds | - | $2,392,500 | $2,392,500 |
| Estimated Capital Gains Taxes | - | ($478,500) | - |
| Total Amount to Invest | - | $1,914,000 | $2,392,500 |
| Charitable Income Tax Deduction | - | - | $1,221,875 |
| Net Annual Income | $95,000 | $95,700 | $119,625 |
The figures contained herein are for illustration purposes only and should not be considered legal, accounting or professional advice. Your actual benefits will vary depending on several factors, such as age, cost basis and current property value, the state in which the property is located and timing of funding a charitable remainder trust. Please contact us for a no-obligation, complimentary consultation.
Property Sellers Bypass Capital Gains Tax
When the time came for Bob and Birdie to sell their property, they chose wisely. They chose hope.
Birdie and Bob Feldman were looking to simplify their lives, spend more time on their favorite pastime — boating — and have a charitable impact. They came upon the perfect solution. To demonstrate their support for City of Hope, they made a gift of real estate: an apartment building they bought as an investment years ago.
With the support of City of Hope’s expert Planned Giving team, the Feldmans created a charitable trust, which enabled them to sell the property and avoid incurring capital gains tax on the transfer. The proceeds from the sale were invested, and the Feldmans receive an annual income that will continue for both their lifetimes, after which the remainder will be used to support lifesaving research and patient care.
“Forty years of being a landlord is enough. Even though we have a management company, being a landlord is very demanding. We want to be able to go on vacation without having to worry about the property … and spend more time on our boat than we are able to now. And we found a way to help people at the same time!” says Bob.