Bargain Sale
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.
Flowchart: Donor sells property to
IU Health below fair market value and claims a charitable deduction for the difference between fair market value and the sale price.
Benefits of a bargain sale
- Avoid capital gains tax on your charitable gift to IU Health Foundation.
- Receive a tax deduction that will reduce your tax bill in the year you sell.
- 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 IU Health Foundation further innovations in healthcare, remove barriers to care, extend care beyond hospital walls to impact the social determinants of health and, ultimately, build a healthier Indiana.
How a bargain sale works
- You sell IU Health Foundation your debt-free 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 difference between the fair market value of the property and the sale price.
- While you may owe some tax on the sale proceeds you receive from IU Health Foundation, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.
Contact us
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.
