Definition of "Bargain sale"

Dawna Stone real estate agent

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Dawna Stoneelite badge icon

The Property Shoppe of Central Florida, Inc.

Charitable planning strategy in which a donor sells an asset to the charity for an amount less than its fair market value. Internal Revenue Service regulations require that the tax basis for the property be established on a pro rata schedule between the sale portion and the gift portion. The donor has a taxable gain on the sale portion.

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