A bargain sale is an agreement between a donor and MBF in which the donor sells property for less than its fair market value. MBF then uses the property to benefit the church or Christian ministries designated by the donor.
How a Bargain Sale Works
- You sell Missouri Baptist Foundation your property for a price less than fair market value.
- You receive the cash from the sale and a charitable deduction for your gift to Missouri Baptist Foundation (the difference between the market value and purchase price).
- While you may owe some tax on the amount you receive from Missouri Baptist Foundation, 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 all of 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 Missouri Baptist Foundation further its work.