Bargain Sale
Your church or a United Methodist ministry purchases your property for less than fair market value. You receive the cash and a charitable deduction for the difference between the market value and purchase price.
Flowchart: Donor sells property to United Methodist Ministries below fair market value and claims a charitable deduction for the difference between fair market value and the sale price.
How a bargain sale works
- You sell your property to your church or ministry for a price less than fair market value.
- You receive the cash from the sale and a charitable deduction for your gift (the difference between the market value and purchase price).
- While you may owe some tax on the amount you receive, the charitable deduction from your gift could offset your taxes this year.
Benefits of a bargain sale
If you are considering selling your property, a bargain sale will help you meet your goals.
- Avoid capital gains tax on your charitable gift.
- The deduction from your gift will give you valuable tax savings that may reduce your tax bill this year.
- With the cash received from the sale, you may then reinvest to create more income for your future.
- Best of all, your gift will help your designated ministry further its work.