How to Sell an Appreciated Asset Without Triggering Capital Gains Tax
Many people wish to retire, sell an asset or a business, have a higher income, or give more to charity. One of the frequent roadblocks to achieving these goals is the fear of triggering capital gains tax. Legacy has a solution for this problem.
By gifting the asset or business to Legacy (a qualified, public 501(c)3 organization), Legacy is able to sell the appreciated property without being required to pay capital gains taxes. Donors are able to receive a full tax deduction for property that is gifted outright. For property that is used to fund a Split Interest Gift, Donors receive a partial deduction.
Funding a Split Interest Gift with appreciated property allows Donors the ability to receive lifetime income based on the full, net sale value of the property. The property is removed from the taxable estate of the Donor and the remainder at the death of the Donor goes to a Family Foundation (Donor Advised Fund, Endowment, or Support Organization).
The lifetime income realized by the Donor is often greater in value than the amount the Donor would have received if the Donor had elected to pay the capital gains tax when selling the property.
Some taxes are optional. Given the choice, what would you prefer?