A charitable gift can be part of a sale
A charitable bargain sale combines a sale with a contribution. An eligible property is transferred for less than fair market value with charitable intent. For an owner, this can be a way to explore receiving payment while also supporting a cause.
The payment, charitable element, potential taxable gain, and final net proceeds require separate analysis. An appraised value minus a proposed price does not, by itself, establish the deduction an owner may claim.
Every proposal starts with a review
The property, debt, ownership, marketability, and proposed terms all matter. An inquiry is an opportunity to ask questions; it is not an offer to purchase or a commitment to accept a property.
Some properties with existing mortgages may be eligible for review. A mortgage changes the transaction and can change the tax treatment. Discuss the loan at the beginning and involve your own advisers.
Understand the details before choosing
Ask your advisers to compare a proposed bargain sale with an outright gift and a conventional sale using the same facts. Review the recipient, transaction costs, responsibilities, and documentation before signing an agreement.