A bargain sale of property to a qualified charity can result in both a charitable deduction and gain recognition.

Question

Quizplus · Accepted Answer

This is true. When a property is sold to a qualified charity for less than its fair market value, the difference between the fair market value and the sale price is considered a charitable donation and can be deducted on the donor's tax return. However, if the donor has a gain on the property, they may also have to recognize that gain and pay taxes on it.

A Bargain Sale of Property to a Qualified Charity Can