Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.
Benefits of a bargain sale
- Avoid capital gains tax on your charitable gift
- Receive a tax deduction that will reduce your tax bill this year
- Take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals
- Help Worcester Art Museum further our important charitable work
How a bargain sale works
- You sell Worcester Art Museum your property for a price less than fair market value.
- You receive cash from the sale.
- You can take a charitable deduction for the value of your gift which is the the difference between the fair market value of the property less the sale price.
- While you may owe some tax on the sale proceeds you receive from Worcester Art Museum, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.
More on bargain sales
A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.
If you have any questions about a bargain sale, please contact us. We would be happy to assist you and answer any questions you might have.