When Property Value Exceeds Your Desired Gift

When your cash flow will not allow you to give as you desire, consider giving a gift of appreciated property. You can reduce taxes and make a substantial gift to charity by directly donating appreciated property to ministry.

But what if the property providing the greatest tax benefit for you has a value that exceeds your desired gift?

There is a solution called a bargain sale. With a bargain sale, the ministry enters into an agreement to purchase the property from you for the difference between the property value and your desired gift. The tax advantages that apply to an outright gift of appreciated property are available on the gift portion.

Capital gains tax will be payable only on the gain attributed to that portion of the property purchased by the charity. Your charitable deduction will be for the difference between the purchase price paid by the charity and the fair market value of the property.

A No Cost, No Obligation Offer

Interested in learning more? We have designed a free Guide to Gifts of Appreciated Property. Let us know if you would like a customized illustration based upon your unique generosity desires.

There are even more tools which can even be used to provide you income from your property. We will be happy to compare these methods for you, relating to specific property and your income needs.

Content derived from Lifestyle Giving Legacy. © 2019 CDF Capital Foundation.