Nemo D'Agostino has enjoyed a rewarding career in real estate development and building golf courses in the northeast. "I am satisfied with my life...and I attribute much success to my ability to extrapolate from my education at Hamilton." A nurse, who rose to one of the top public health positions in New York State, Muriel often speaks glowingly of Nemo's Hamilton education. Clearly, it enriched their lives.
Among their real estate holdings, Nemo and Muriel owned 80 acres of greatly appreciated, undeveloped land bordering Kirkland Glen and Reservoir Road. Motivated primarily by protecting Hamilton's southern boundary, they discussed various options with Hamilton over several years. In 2002, their circumstances changed when they sold a highly appreciated, commercial property. Their advisors recognized that the income tax charitable contribution deduction from a gift of the glen property would help to offset some of the tax due from the sale of the commercial property. Maximizing the income tax charitable contribution deduction is a fundamental planned gift strategy.
Structured as an installment bargain sale, Hamilton will make modest payments to the D'Agostinos for the next six years to replace some of the income that was generated by the commercial property. The installment payments provide retirement income to the D'Agostinos and allow the capital gains, attributable to the sale portion, to be reported over the life of the contract. The D'Agostinos avoided tax on the capital gain associated with the gift portion. In short, the donors have "unlocked" their equity in a highly appreciated, illiquid, non-income producing asset, while saving capital gains tax.
Finally, the contribution removed the value of the gift from their estates, saving estate tax, as well as simplifying the responsibilities of the executor at some point in the future.
The College has benefited tremendously from the generosity of the D'Agostinos. Acquiring a valuable 80-acre parcel for a fraction of its value and protecting the southern border of the campus forever.
Please advise the College if you have included Hamilton in your estate plan or completed a planned gift so you can be honored and recognized as a Joel Bristol Associate.
