Part Sale/Part Gift

If you need to realize some immediate income from your land, yet you would like property to be protected; a bargain sale might be the answer. In a bargain sale, you sell the land for less than its Fair Market Value. This not only makes it more affordable for the land trust, but also offers several benefits to you. The difference between the appraised market value and the sale price to a qualified nonprofit or governmental agency is considered a tax-deductible charitable contribution.

Advantages of a Bargain Sale

  • Provides cash
  • Avoids some capital gains tax
  • Entitles you to an income tax deduction based on the difference between the fair market value of the land and its sale price.