An arrangement that allows an individual to reduce tax liabilities by selling an asset to a charity at a price below its market value. For example, an individual might use this strategy to avoid paying capital gains tax on the sale of a vacation property. If the property was originally purchased for $300,000 and it is now worth $500,000, the owner could sell it to charity for $400,000 and avoid paying taxes on $100,000 of capital gain. An individual who wants to use this strategy must obtain an independent appraisal of the value of the property to be sold.
Related information about bargain sale to a charitable organization:
- Bargain Sale To A Charitable Organization Definition | Investopedia
The sale of a good or service to a charitable organization for less than the fair market value of the good or service received.Bargain sales are often used by ...
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Apr 1, 2012 ... Bargain sale to a charitable organization. (a) In general. (1) If for the taxable year a charitable contributions deduction is allowable under ...
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Code Section 1011(b): Bargain sale to a charitable organization. Code Section 2055(e)(4): Works of art and their copyright treated as separate properties. Treas.
- Publication 544 (2011), Sales and Other Dispositions of Assets
You sold section 1245 property in a bargain sale to a charitable organization and are allowed a deduction for your contribution. Your gain on the sale was ...