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Support Audubon >Planned Giving
Charitable Bargain Sales
(Complete gift description) If you have real or tangible property that you would like to donate, but cannot afford to donate this property outright, it may be possible to sell it to Audubon for less than its appraised value. This transaction is called a bargain sale, which is part charitable gift and part sale. A bargain sale may be possible if you own real property which Audubon would like to aquire as an Audubon Center, or tangible property for which Audubon has a use. Are you saying that this plan provides me with cash and a charitable deduction? That’s exactly right. A bargain sale is a hybrid tansaction. For example consider the following hypothetical example: You enter into a bargain sale of real property with an appraised value of $200,000. Audubon pays you $100,000 for this property. You will be deemed to have made a gift to Audubon of $100,000 which is deductible for income tax purposes. If the property is appreciated in value you will avoid 50% of the capital gain and pay capital gains tax on the other 50%. The charitable bargain sale works like this: - We mutually agree on a purchase price that is less that the property's fair market value, which has been determined by your independent appraiser.
- We may pay the purchase amount upfront, or issue you an installment note for a mutually agreed upon term of years and interest rate.
What are some considerations if I decide to go forward with this?
- First, Audubon must review the property and decide that we want to aquire it.
- Second, you will need to secure an independent appraisal of the property to establish its value for the deduction.
Our office can advise you on these and other matters that may arise during the course of our conversation.
For more information
Email us, complete the personal illustration form, or call us at 212-979-3033 so that we can assist you through every step of the process.
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