With a Bargain Sale, you sell your property for less than fair market value in exchange for cash from the sale and reduced income taxes. The difference between the amount you receive and the selling price of the property is then given to the local, regional, or global ministry that you choose.
Bargain Sale
Property
Sale Portion
Favorite Ministry
Benefits of a bargain sale
- Avoid capital gains tax on the charitable gift
- Reinvest the cash from the sale
- Benefit a ministry you are passionate about
- Receive a tax deduction for the year of the gift
How a bargain sale works
You sell your property to the Foundation for a price that is less than fair market value. Once we liquidate the asset, the value of your gift-fair market value minus the cash you receive-is given to the ministry that you designate. You receive cash from the sale and can take a charitable deduction on the amount that is given to ministry. A Bargain Sale is often referred to as a Part-Gift, Part-Sale transaction.
To run a personalized presentation about how a Bargain Sale would work for you, click here.
Facts About a Bargain Sale:
- You may still owe some tax on the sale proceeds you receive from us, but the charitable deduction from your gift can partially or fully offset the capital gain taxes associated with the sale.
- A Bargain Sale may be accomplished even if you have a mortgage on your property. (Please consult your tax advisor about the potential implications of relief from indebtedness.)
- Commercial properties, in addition to personal properties, also qualify for a Bargain Sale.
- A Bargain Sale can be done with any tangible asset, not just real estate. Examples include stocks and bonds, industrial equipment, or oil and mineral rights.
