Bargain Sale

Bargain Sale

If you own property you’re considering selling and want to reduce your tax burden while supporting Roger Bacon High School, a bargain sale may be a smart solution.

This strategy allows you to sell an asset and make a charitable gift at the same time.

How It Works

A bargain sale is a transaction that combines a sale and a donation:

1. Sell at a Reduced Price
   You sell your property to Roger Bacon High School for less than its fair market value.
2. Receive Cash
   You receive payment for the agreed-upon sale portion.
3. Claim a Charitable Gift
   The difference between the property’s full market value and the sale price is considered a charitable contribution.

Key Benefits

A bargain sale can provide both financial and philanthropic advantages:

• Potential to reduce capital gains taxes on the gifted portion
• Eligibility for a charitable income tax deduction
• Immediate access to cash from the sale
• Opportunity to reinvest proceeds or support retirement planning
• Ability to make a meaningful impact on Roger Bacon’s mission

Tax Considerations

While a portion of the transaction is treated as a sale and may be subject to taxes, the charitable deduction generated from the gift portion can help offset some—or potentially all—of that tax liability.

Additional Flexibility

In certain situations, a bargain sale may still be possible even if there is an existing mortgage on the property. Because this can introduce additional tax considerations, it’s important to consult with your financial or tax advisor.

A Balanced Approach to Giving

A bargain sale offers a unique way to convert assets into cash, reduce taxes, and support the future of Roger Bacon High School—all in one transaction.