How does a Bargain Sale work?
You sell an property to Grand Piano Series for less than its appraised market value. This transaction results in a cash payment to you from us for less than the appraised value, and you get a tax deduction based on the difference. Of course everyone’s tax situation is different, so this should be discussed with your tax advisor to work out all the details. Once we own the property, we can use it or sell it to generate cash for our charitable activities.
What are the benefits of a Bargain Sale?
You get a cash payment from us for a portion of the property and an immediate income tax deduction based on the discount from market value. In addition, there are no capital gains taxes on the donated portion of the property. If you donate the entire property, your deduction is based on the full appreciated value of the property without any capital gains taxes!
Can I donate property with a Mortgage or Lien?
Not usually. Grand Piano Series is not in a position to offer large cash payments that might be required to pay off a substantial mortgage. If you are considering this, talk with us and we will evaluate the financial details to see if we can make it work. Generally it is not to your benefit to have a charity assume your debt because this will be treated as taxable income to you.