Consider Changing Your Investment Strategy

Whether it’s a change in a retail climate or perhaps a promising new venture,when real estate investors need to react swiftly, one of the best tools to consider is an IRS Section 170 Bargain Sale.

Here’s a quick summary of a Bargain Sale:

• An owner offers a property to a qualifying nonprofit at a reduced sales price.
• The nonprofit accepts and pays cash at closing for the property.
• The seller additionally receives a tax deductible for the difference between the sales price and the Fair Market Value, usable for up to five years.

Here are a few of the reasons an investor might want to consider a Bargain Sale:

• Tax Liabilities –Much of the benefit comes from a large charitable contribution deduction to a seller with a corresponding tax liability.
• Philanthropy — This statute was originally passed to enhance and encourage gifting.
• Quick Sale — Often, a Bargain Sale will be completed much more quickly than a traditional transaction, primarily for the lack of a need to traditionally market the property.
• The Next Business Venture — Combining the cash at closing with freed-up funds previously designated for tax payments, many owners can often move into a new and promising undertaking.
• A Favorable Appraisal–The appraisals allowed under a Bargain Sale are extremely advantageous to the seller. Rather than a standard “bank” appraisal, a Bargain Sale appraisal tips the assessment towards the seller, pushing the profit possibilities higher that in a regular sale.

The Bargain Sale can allow an investor to shift focus and free funds for a new endeavor quickly, so reach out to Dr.Joe Johnson’s team at Welfont (Welfont Joe Johnson)today for a clear view of your options.