Howard and Lynn were age 55 when they purchased some land outside of town, thinking that it would be a good investment they could later sell for a higher price. Over the years, development from town moved toward the property and the land ended up next to a large commercial store. Howard and Lynn began to rent their property to the store for overflow parking.
Howard: "We have owned this property for over 10 years. It was 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 would now like to sell."
Lynn: "It would be nice if we could sell without paying a large tax. Our tax advisor told us that if we were to sell, there would be a large capital gains tax. This would also be a good year for us to have some tax deductions."
Howard: "We had also recently gotten involved with a local organization that helps families get back on their feet after the loss of a house or a job. We really wanted to support the ministry work that they were doing.
We heard about a Charitable Remainder Unitrust with the Nazarene Foundation and discovered that it was the perfect solution to our problem. We saved about $36,000 in capital gains tax and almost $18,000 in income taxes."
Lynn: "Plus, we increased our income. The land was producing almost no income before. Now, we receive over $12,000 in income each year. What really makes us happy, though, is that when we no longer need our trust, all of the rest of the income from our land will go straight to the ministry that we love so much."
**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 benefits may be different, please contact us for more information.
