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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.

Flowchart: Donor sells property to OXY below fair market value and claims a charitable deduction for the difference between fair market value and the sale price.

Benefits of a bargain sale

  • Avoid capital gains tax on your charitable gift
  • Receive a tax deduction that will reduce your tax bill this year
  • 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
  • Help Occidental College further our important charitable work

How a bargain sale works

  1. You sell Occidental College your 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 Occidental College, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.

More on bargain sales

A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.

Contact us

If you have any questions about a bargain sale, please contact us. We would be happy to assist you and answer any questions you might have.

scriptsknown

"Members of the Oxy community who support Oxy through their estate plans have provided us with an incredibly distinctive gift-an infinite investment in the College. We are grateful to these generous donors whose forethought will allow Oxy to deliver our exceptional liberal arts education to generation upon generation of talented students."

- President Harry J. Elam, Jr.

"Oxy showed me that the path to one's goals need not be linear or conventional. I learned how to think, to write, to create; to trust my instincts and pursue my interests with passion and a standard of excellence. Not a day has passed that I have not been rewarded in some way by my Occidental education."

- Michael J. Fields '70

Michael and his wife Pamela recently documented an estate gift to support the Obama Scholars Program and the EdgertonOccidental Merit Scholarship.