What is a Bargain Sale?
An agreement between a donor and MBF in which donor sells property for less than its fair market value. MBF then resells property and uses gain to benefit the church or Christian ministries designated by the donor.
A donor wants to sell their property and also make a gift to their church or a Christian ministry.
MBF may buy the property at a bargain price.
Immediate Benefits – Donor gets a cash payment (or perhaps debt relief).
Bypass Gain – Donor avoids gain on the part of the property that is a gift.
Tax Deduction – Donor receives a current federal income tax deduction for the part of the property given to MBF for the benefit a church or other Christian ministries.
Anyone that owns appreciated property and wants to benefit charity but needs a benefit in return (either cash or debt relief).
Charitable Deduction – Donor receives a charitable deduction for the difference between the fair market value of the property transferred and the cash received in the bargain sale.
Cash or Debt Relief – Donor receives cash payment or debt relief without paying substantial taxes.
Support for Ministry – The difference between the sale price and the appraised value of the property is a gift to benefit a church or Christian ministry.
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