Your path to this gift: You're considering a lifetime gift in partnership with USP > You hold marketable real estate > You want to secure some cash from the property on a transfer > You want to reduce capital gains tax and also secure an income tax deduction

The charitable bargain sale gives you cash that you can use to purchase your next home or as the entry fee for a retirement facility, and it gives you a charitable income tax deduction.

The charitable bargain sale works like this:

1. We mutually agree on a purchase price that is less than the property's fair market value, which has been determined by your independent appraiser.
2. We may pay the purchase amount upfront, or issue you an installment note for a mutually agreed upon term of years and interest rate.

The bargain sale is our only gift plan that can give you both a lump sum of cash and a charitable deduction. In addition, you avoid capital gains tax on the portion of the transaction that was a gift to USP.

Here are some considerations if you are contemplating a bargain sale to us.

1. First, as with all gifts of real estate, we must review and approve the transfer.
2. 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 matters.

Note that if you give us property carrying debt – like a mortgage or a lien – and we assume and satisfy the debt, the IRS considers your donation to have been a bargain sale, even if we don't pay you any cash. The amount of debt we assume will be considered taxable income to you.

How Do You Create a Charitable Bargain Sale?

You should consult with an attorney expert in the areas of charitable gifts and estate planning. Email us, complete the personal illustration form, or call us at 888-857-6264 so that we can assist you through every step of the process.

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