Scripps Health purchases your property for less than fair market value. You receive the cash and a charitable deduction for the difference between the market value and purchase price.
How a Bargain Sale Works
- You sell Scripps Health your property for a price less than fair market value.
- You receive the cash from the sale and a charitable deduction for your gift to Scripps Health (the difference between the market value and purchase price).
- While you may owe some tax on the amount you receive from Scripps Health, the charitable deduction from your gift could offset your taxes this year.
Benefits of a Bargain Sale
If you are considering selling your property, a bargain sale can help you meet your goals.
- Avoid capital gains tax on the gift portion of the transfer to charity.
- The income tax deduction from the gift portion of the transaction of your gift will give you valuable tax savings that may reduce your tax bill this year.
- With the cash received from the sale, you may then reinvest to create more income for your future.
- Best of all, your gift will help Scripps Health to further its work.