Bargain Sale
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What is a Charitable Bargain Sale?
A Bargain Sale is a charitable transaction where a donor sells the property to Cure SMA for less than fair market value, thus partially gifting the asset while also receiving some compensation.
- A Bargain Sale involves the transfer of property from a donor to Cure SMA at a price below its fair market value.
- The donor receives a combination of cash and a charitable contribution deduction for the difference between the sale price and the fair market value of the property.
- This arrangement allows the donor to support Cure SMA while also realizing some financial benefit from the sale of their property.
- Cure SMA acquires the property at a reduced cost, enabling them to further their mission or programs.
Benefits from a Charitable Bargain Sale:
- Tax deduction: Donors can claim a charitable contribution deduction for the difference between the sale price and the fair market value of the property.
- Liquidation of assets: Allows donors to convert property into cash while also supporting Cure SMA.
- Reduced capital gains tax: By selling the property at a discount donors may mitigate capital gains tax obligations.
- Fulfillment of philanthropic goals: Offers the opportunity to make a meaningful contribution to Cure SMA.
How your donation will benefit the SMA community
- Basic research to pave the way for new SMA muscle treatments and a cure
- SMA advocacy initiatives like caregiving access and transportation
- Improving standardized care for every person with SMA
“If it weren't for Cure SMA, we might not have the treatments in place that have helped my daughter to thrive while living with SMA. I'll forever be grateful and do what I can to support Cure SMA."
How a Charitable Bargain Sale Works
In a Bargain Sale, the donor and Cure SMA negotiate a purchase price for the property that is below its fair market value. The donor sells the property to the organization at this reduced price, and the difference between the sale price and the fair market value is considered a charitable contribution. The donor then receives both cash from the sale and a tax deduction for the donated portion of the property.
In this type of Bargain Sale, the donor receives cash in addition to the charitable contribution deduction.
This involves the sale of property to Cure SMA with the payment spread out over time, providing a steady stream of income for the donor while still offering tax benefits.
The donor sells the property to Cure SMA at a discount and then leases it back, allowing them to continue using the property while receiving immediate financial benefits and tax deductions.
Contact Us
If you have any questions, would like further information, or want help making your contribution, then please contact us at [email protected] to get started.
Legacy giving typically takes many conversations and is not a fit for everyone. Conversations with Cure SMA about planned giving should be considered general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting, or other professional advice. To determine how a gift or estate planning decision might affect your circumstances, it is expressly recommended that you consult an attorney, financial advisor, or other qualified professional.