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Bargain Sale

Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.

Benefits of a bargain sale

• Avoid capital gains tax on your charitable gift to the University
• Receive a tax deduction that will reduce your tax bill in the year you sell
• Take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals

How a bargain sale works

1. You sell the University of Indianapolis your debt-free property for a price less than fair market value.
2. You receive cash from the sale.
3. You can take a charitable deduction for the value of your gift which is the the difference between the fair market value of the property less the sale price.
4. While you may owe some tax on the sale proceeds you receive from University of Indianapolis, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.

Next Steps:

1. Contact UIndy's Office of Gift Planning at 317-791-2553 or [email protected] for additional information about a bargain sale or to speak with Darcy about which appreciated asset gift is right for you.
2. Seek the advice of your financial or legal advisor.