Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.
Benefits of a bargain sale
- Avoid capital gains tax on your charitable gift
- Receive a tax deduction that will reduce your tax bill this year
- Take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals
- Help further the important charitable work of the organizations that you care about by setting up a fund with CommunityGiving or one of our partner foundations
How a bargain sale works
- You sell CommunityGiving your property for a price less than fair market value.
- You receive cash from the sale.
- You may take a charitable deduction for the value of your gift which is the difference between the fair market value of the property less the sale price.
- While you may owe some tax on the sale proceeds you receive from CommunityGiving, but the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.
- CommunityGiving who now owns the property will likely sell the property and the proceeds minus expenses may be added to a fund with CommunityGiving or one of our partner foundations and then designated to benefit charitable causes you select. PLEASE NOTE: CommunityGiving is quite selective on which properties it would consider for a bargain sale. Please contact us with any questions.
More on bargain sales
A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.
If you have any questions about a bargain sale, please contact us. We would be happy to assist you and answer any questions you might have.