OfflineThis is more of a tax question, but has anyone been using a Charitable Trust to move their profits from a property into, to avoid the 15% tax? (if you aren't going to immediately use those profits to purchase another property). Please advise!
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By Definition:
CHARITABLE TRUST
A trust created for the benefit of a legal charity.
This type of trust was set up to protect the interest in a charirty or orgnization that you deeply cared about as well as its assets. I personally, would not think of filtering my real estate acquisitions under a charitable trust because first its not right, second, it is illegal it that property is not specifically for the use of said charity and third, it does not matter what type of tax break this will give you, will it give you peace og mind knowing it was not right.
NOW - if you actually have a charity that you are activily participating in and want to insure protection of property as well as substantial tax breaks for it - go ahead and put property in it.
Best of luck
Anita
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Thank you very much for your reply. Actually, this concept was suggested to me by the advisors at The Tax Club. The property would not be put into the Trust, the profits from the sale of the property would be put into the Trust. So the monies could be used for the Charity while you are deciding what you want to do in the future.