Pass Your Unproductive Property Off

You’re deeply involved in watching your favorite team play a critical football game when suddenly you realize that if the quarterback would just pass the ball to the guy open downfield, your team might just win. So, you end up chanting “pass the ball” and groan when he doesn’t. You may be holding onto a property you desperately need to pass off, but you’re waiting for the real estate market to improve or some other reason to sell it. In this case, you may not see that opening downfield.

A 100-year-old IRS code – the 170 Bargain Sale – was originally created to encourage philanthropy, but also offers a brilliant solution to this situation.When an asset is simply accumulating costs – taxes and maintenance – with no relief in sight, it’s time to hand it off to someone who can put it to good use.With the Bargain Sale, you can offer a nonprofit your asset at a significantly reduced price, receive cash at closing and receive a charitable contribution deduction for the difference between the sales price and fair market value.

When faced with a large tax bill, this deal sounds even more attractive, since the charitable deduction can be used in one year or over five years. This strategy gives the owner of a tired old building or neglected patch of weeds an opportunity to both rid himself of a burden and do something significant for his community. It may be time to consider one of the oldest tax strategies on the IRS books – the 170 Bargain Sale. To better understand how theIRS Section 170 Bargain Sale can help you pass off your slanging property, connect with an expert, Dr. Joseph Johnson (Welfont Joe Johnson) and his team at Welfont, today.