Gifts of real estate or personal property offer an opportunity to creatively fund a charitable gift to Mount Washington Observatory while securing an income tax charitable deduction, estate tax savings, and a reduction or elimination of capital gains tax. You may make a gift of real estate, such as a personal residence, farm or investment property, or a gift of tangible personal property, such as artwork or jewelry. Current, qualified appraisals are required for all gifts of property.
Outright Gifts of Real Estate
Making an outright gift of real estate provides significant tax benefits in that you will not recognize capital gains on the property, and you may deduct the full fair-market value of the property, up to 30% of your adjusted gross income in the year of the gift. Any amount in excess of the 30% limitation may be carried over for five years.
Gifts of Real Estate Made by Will
You may choose to give real estate to the Observatory through a devise in your will. This will reduce your estate tax liability because the fair market value of the devise is fully deductible for estate tax purposes.
Gift of a Remainder Interest in Real Estate
You may use a personal residence or farm to make a charitable gift to Mount Washington Observatory, while retaining a right of possession. When you transfer the property to the Observatory, you will immediately realize an income tax deduction for the present value of the remainder interest, and you can retain your right of possession for as long as you wish.
Gift of Real Estate and Generating a Stream of Income
If you would like to use real estate to fund a gift to the Observatory while retaining a stream of income, you can use the real estate to fund a Charitable Remainder Annuity Trust. This will enable you to receive payments for life or for a specified term which is not to exceed twenty years.
Gifts of Tangible Personal Property
Tangible personal property such as artwork or jewelry may also be used to make a gift to the Observatory. An individual making such a gift is entitled to an income tax charitable deduction that is limited to the lesser value of the cost basis or the fair market value. A current, qualified appraisal is required. Please contact us to discuss gifts of tangible personal property in greater detail.
Mount Washington Observatory is a nonprofit organization under section 501(c)(3) of the Internal Revenue Code. Our tax ID number is 02-0225135. Please seek the advice of a professional estate planner to ensure that your interests are appropriately served.
For questions and comments, please contact Executive Director Scot Henley at (603) 356-2137, ext. 218.