Bargain Sale to Charity

Bargain Sale to Charity

Description and Definition of Bargain Sale to Charity

The sale of property to a charity at a price that's less than the fair market value. Under certain circumstances this may result in a tax deduction or taxable income to you. If the property has appreciated in value you must allocate your basis between the portion of property sold and the portion of property donated. Any gain on the portion of property sold is taxable, and the remaining portion is deductible as a charitable contribution subject to the charitable contribution rules.


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