You probably remember that Dewey Watson and I have a nice brochure on strategies to save on capital gains taxes as you sell your home (email me for a copy, and see this link for an IRS site on this topic). I was reminded of another strategy when getting together with the local major donor team of my alma mater (at Mt. Holyoke, it really is an alma mater rather than an almo pater).
Alumnae have been donating a portion of the proceeds of the sale of their homes to the College, furthering their charitable goals while reducing capital gains taxes. So if you anticipate $500,000 in capital gains after accounting for your purchase price and transaction costs ("basis"), and after your $500,000 (married) or $250,000 (single) capital gains exclusion, you could donate say 30% of the sale price to a favorite charity and further reduce your capital gains tax bill. Here is an article about donating real estate proceeds from the Boston Globe. As always, you need to consult with your tax advisor on these tax-saving strategies.
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