The following illustration represents a potential scenario faced by faithful supporters of Family Research Council. The names and pictures in the story are not that of actual FRC partners.
When Dennis and Patricia were both 55 years of age, they purchased some land just outside of town. They anticipated their investment could be sold later for a higher price.
Over the years, the town has grown south toward their property. Now, there is a large commercial store situated adjacent to their land. Dennis and Patricia presently rent the property to that store for use as overflow parking.
Dennis: This property has done as we hoped and increased in value during the past 10 years we have owned it. Through the rental agreement, we have received just enough income in the last few years to pay the taxes. As we contemplate retirement now, we think it is time to sell.
Patricia: We would like to sell the land without paying a large tax. However, our tax advisor has told us that if we were to sell, there would be a large capital gains tax. That is a little discouraging. Rather than paying more taxes, we were hoping to get some tax deductions this year.
As partners of FRC, our Gift Planning Staff can help friends like Dennis and Patricia explore how they can use a special trust to receive three very nice benefits which include:
- Bypass of capital gain
- Increased income
- Charitable deduction
Dennis and Patricia's Potential Solution: With the assumption of multiple factors, in this scenario a Charitable Remainder Unitrust could save about $36,000 in capital gains tax and almost $18,000 in income taxes. That is over $54,000 in tax savings! Also, while the land was producing almost no income before, the unitrust could yield over $12,000 in income each year for Dennis and Patricia. This would provide a very nice additional retirement benefit.
Please note: The names and image of Dennis and Patricia are not that of actual supporters of Family Research Council. This story represents a combination of scenarios faced by FRC partners with similar circumstances. Since your unitrust benefits under federal rules may be different from this scenario, you may want to click here to view a color example of your benefits based on your age.
For more information please select one of the following options:
1. If you would like to view a color presentation of the plan for Gene and Carol White, please click one of these buttons.
2. If you have property and would like to see a color illustration with your property value and your ages, then please click here.
3. If you would like to request a printed illustration of a Tax-Free Sale with your payout rate, then click here.
4. You may print a unitrust tri-fold brochure. The Sum of Objectives Realized or The Tax-Free Sale.
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