planned

giving

bargain sales

A bargain sale occurs when a donor sells property to Denver Botanic Gardens for less than the property’s fair market value. The amount of fair market value over the sales price is the donor’s charitable contribution, which may be reduced by allocation of tax basis and reduction rules relating to unrealized gain. Almost any type of asset may be sold in a bargain sale, depending on the cash available for purchase and the suitability of the asset.

What are the advantages? The charitable contribution portion qualifies for income tax deduction. It may be carried forward for five years if not fully usable in year of gift and it allows the donor to receive some cash sales proceeds while making a charitable gift. A bargain sale may avoid capital gain tax liability on highly appreciated property.

For more information about planned giving options, or if you would like an illustration of life income to address your particular situation, please contact the Capital and Major Gift Manager at 720-865-3511 or e-mail development@botanicgardens.org.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. The content in this Planned Giving section has been developed for Denver Botanic Gardens by Future Focus. Please report any technical problems to Future Focus webmaster.