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Giving to the Foundation: Ways To Give

Bargain Sales

A “bargain sale” occurs if the Foundation purchases real estate from a donor at a price less than fair market value as determined by a qualified appraiser. The difference between the sale price and fair market value is a tax-deductible gift. The donor’s cost basis is allocated proportionally between the sale and gift portions, so the donor doesn’t owe capital gains tax on the part attributed to the gift. The IRS form 8283 must be filed to claim the charitable deduction, with copies of the qualified appraisal, transfer deed, and other papers attached. The forms are available from the IRS Web site: www.irs.gov

To our Donors: Your gift to the Pellissippi Foundation will impact your financial situation. This Web site does not provide legal or financial advice. Consult your attorney, tax adviser, and the Foundation before making or planning a gift.

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