You may be looking for a way to divest yourself of an appreciated asset while receiving some value in cash and the balance as a charitable deduction. A bargain sale may be the solution. We work with you and your legal and tax advisors to help fulfill your charitable goals while providing maximum tax benefits.
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 The Dallas Foundation further our important charitable work
How a bargain sale works
- Sell The Dallas Foundation your appreciated asset, often real property, for a price less than fair market value.
- Receive cash from the sale and a charitable deduction for your gift to The Dallas Foundation (the difference between the market value and sale price).
- While you may owe some tax on amount you receive from The Dallas Foundation, the charitable deduction from your gift could offset your taxes this year.
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.