If you are considering a gift of your residence or farm to Purdue, but wish to live there during your lifetime, a gift of the real estate with a retained life interest is one solution. Transferring the property to Purdue Research Foundation, while reserving a life estate for you and/or another person, provides you with a current federal income tax charitable deduction. The deduction equals the present value of Purdue’s remainder interest. This gift also permits you to avoid any potential capital gains tax on the built-in appreciation.

Taxation: The beneficiary is taxed on any income.

Benefits:

• Tax deduction based on value of property.
• Avoidance of capital gains tax.
• Donor retains the use of the property during his/her life.

For more information, please call the Planned Giving Office at (800) 677-8780 or e-mail plangift@purdue.edu.