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 right 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 Legacy Deo further its charitable mission
How a bargain sale works
- You sell Legacy Deo your property for a price less than fair market value.
- You receive cash from the sale.
- You can take a charitable deduction for the value of your gift, which is the difference between the fair market value of the property and the sale price.
- While you may owe some tax on the sale proceeds you receive from Legacy Deo, the charitable deduction from your gift could offset some, most, or all of your capital gains taxes associated with the sale.
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 your tax advisor prior to completing a bargain sale gift.
If you have any questions about a bargain sale, please contact us. We are happy to assist you and answer your questions.