With the recent housing market downturn, some people may wish to sell their property for debt relief. Salem Art Association can purchase property for less than fair market value (at a bargain price) or can accept a gift of mortgaged property. A bargain sale works just like any other sale except that the sale price is a bargain (less than the property’s worth).
Benefits of a Bargain Sale
The donor receives the cash or debt relief they desire, and Salem Art Association receives valuable property for a payment of less than the fair market value price. The difference between the sale price and the appraised value of the property is a gift to Salem Art Association.
The donor avoids gain on the part of the property that is a gift.
The donor receives a charitable deduction for the difference between the fair market value of the property transferred and the cash received in the bargain sale.
For more information, please contact Sandra Burnett, Executive Director, at 503-581-2228 x303 or sandra@SalemArt.org.