| 1. |
Landowner agrees to sell parcel to non-profit organization suggested by Development Partners and settle at a future date. |
| 2. |
Non-profit organization engineers and entitles property for future development; the value of these improvements inures to the value of the land, dramatically increasing its value at no expense to the landowner. |
| 3. |
As a result of improvements, new appraised value comes in over agreed sales. Upon settlement, landowner receives:
- Cash from sale price
- The amount of the difference between sales price and new appraised value recognized as a charitable contribution with associated tax benefits which can be carried forward up to 5 years.*
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Notes:
The Bargain Sale can also benefit landowners who choose to sell in multiple phases (Installment Bargain Sale), to extend tax benefits for years or to shelter other income.
* Consult with your tax attorney for specific regulations
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