If
you own real estate that you do not wish to pass on through your
estate but which you wish to enjoy throughout your life, then you
may make a gift of the property to Dartmouth while retaining the
use of it through your lifetime. The property may be your primary
residence, a second home, farm, or forest land.
In return for such a gift,
you can claim an immediate income tax charitable deduction equal
to the present value of Dartmouth's interest. Since you retain lifetime
use of the property, the income tax deduction is less than the full
appraised value of the property.
While you are living there,
you continue to pay taxes and upkeep. Any capital improvements you
make should be partially income tax deductible.
Since your home is transferred
to Dartmouth now, the gift reduces your taxable estate, potentially
providing additional family tax savings.
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