Appreciated Real Estate & Charitable Remainder Trust

Richard and Kathy Bates, age 70 and 69, respectively, want to retire and spend more time traveling. To meet these goals, they decide to sell an apartment building they purchased 20 years ago for $2,000,000, which was recently appraised for $6,000,000. After claiming $750,000 of depreciation, their current basis is $1,250,000. They are concerned about the effect of capital gain tax on the remaining $4,750,000, which they think would leave them with only $5,107,000 to invest toward their retirement and travel goals. Learn how Richard and Kathy avoided capital gains tax and received a life income.