Covenant Health System
About Us My Mission News Room Careers Contact Us
Find Services at Mission Hospital Our Doctors Our Services For Patients For Visitors For Community
Donor Stories
Foundation
Planned Giving Home
Gift Options
What to Give
How to Give
Donor Stories
Create Your Plan
Plan Your Will
Learn About Wills
Planned Gifts Calculator
News
Our News
Washington News
Personal Planner
Savvy Living
Finance News
For Advisors
Advisor Spotlight
Charitable Tax Reference
Deduction Calculator
Case of the Week
Private Letter Ruling
Article of the Month
Meet the Staff
My Account
Contact Us

Share this page:

Facebook
Twitter
Google +
Text Resize

Tax-Free Sale

Tax-Free Sale

Howard and Lynn were age 55 when they purchased some land outside of town. They thought it would be a good investment that they could later sell for a higher price.

Over the years, development from town has moved toward the property and their land is now next to a large commercial store. They now rent the property to the commercial store for overflow parking.

Howard: We have owned this property for over 10 years. It has been a good investment and increased in value. We have received just enough rental income in the last few years to pay the taxes. However, we now would like to sell.

Lynn: It would be nice if we could sell without paying a large tax. Our tax advisor has told us that if we were to sell, there would be a large capital gains tax. We also could use some tax deductions this year.

The good news is that Howard and Lynn were able to create a special trust called a charitable remainder unitrust and receive three very nice benefits.

  • Bypass capital gain
  • Increase income
  • Charitable deduction

Howard: We are delighted with our unitrust. With our unitrust, we saved about $36,000 in capital gains tax and almost $18,000 in income taxes. That is over $54,000 in tax savings!

Lynn: Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. This increased income is one of my favorite parts of the plan.

*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your unitrust benefits may be different, you may want to click here to view a color example of your benefits.


scriptsknown
Play Your Will
Play Your Will
Wills Guide
eNewsletter Sign-up
eNewsletter Sign-up