# At 71 She Gives House to Church but Keeps Living There

> 71-year-old woman can deduct taxes now by giving church her house with retained life estate.
- Title: At 71 She Gives House to Church but Keeps Living There
- Summary: 71-year-old woman can deduct taxes now by giving church her house with retained life estate.
- Keywords: retained life estate, tax deduction, church gift, house transfer, remainder interest, irs publication 526, section 7520 rate, american cancer society, charitable giving, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/10/at-71-shell-give-her-house-to-her-church-but-keep-living-in-it-she-can-take-a-tax-deduction-now-for-a-gift-the-church-gets-later
- Author: David Beren
- Published: 2026-11-10T18:21:55+00:00
- Read time: 1 min
- Topics: retained life estate, tax deduction, church gift, house transfer, remainder interest, irs publication 526, section 7520 rate, american cancer society, charitable giving
## She Keeps House for Life
She’s 71, sitting on the same front porch she’s used for decades, and she isn’t planning to leave.
## House Goes to Church Later
She’s already decided the house goes to her church someday.
## Tax Deduction Now Possible
She can sign the house over now, keep living in it for the rest of her life, and take a tax deduction this year.
## Retained Life Estate Explained
This setup is called a retained life estate. In plain words, she gives the church the house but keeps the right to live there until she dies.
## Church Gets Remainder Interest
The church’s share, the part it gets later, is called the remainder interest.
## IRS Exception for Her Case
Normally you can’t deduct a gift of only part of something you own. Homes are an exception.
## IRS Publication 526 Covers Her
IRS Publication 526 describes almost her exact case: You keep the right to live in your home during your lifetime and give your church a remainder interest that begins upon your death.
## Tax Code Supports This
The tax code backs this up in 26 U.S.C. § 170(f)(3)(B)(i). Any qualified charity works. The church is just her pick.
## Church Gets Discounted Value
The church has to wait, so the IRS discounts the gift. The math uses IRS actuarial tables tied to her age, plus a monthly interest rate called the Section 7520 rate.
## Section 7520 Rate for 2026
For November 2026, that rate is 6.2%.
## Depreciation Affects Deduction
The law also requires factoring in depreciation (computed on the straight-line method) on the property.
## Key takeaway

Woman keeps home while giving church remainder interest, claiming tax deduction for future gift.