Bargain Sale

About Bargain Sale:

generally, the sale of property for less than fair market value. A bargain aile to a charitable organization is treated as partly a charitable contribution deduction . and partly a sale or exchange. The basis of the property sold must be allocated between the portion “sold” and the portion “given” to charity, based on the fair market value of each portion. A bargain sale may result in a taxable gain even if the selling price does not exceed the basis for the entire property.

<h3<Bargain sale to charity

Selling property to a charity for less than the property's actually worth. Depending on the circumstances, this could result in a tax deduction or extra taxable income.