What is the difference of an asset that is sold below fair market value referred to as?

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The difference of an asset that is sold below fair market value is referred to as a bargain element and refers to bargain sales. For individuals the difference between the sale price and the fair market value is treated as a gift. The difference is taxed as ordinary income for employees. For shareholders the difference is a constructive dividend and taxable as ordinary income. Charitable organizations can treat the difference as part sale and part contribution.

What Is the Difference of an Asset That Is Sold