Bargain Sale of Land
Click here for printable versionHow can I sell part of the value of my land while receiving some tax benefits?
Another approach with advantages to both the landowner and the Land Trust is a bargain sale. The landowner sells a conservation property to the Land Trust at less than full market value and donates the remaining value.
What are the benefits to the landowner?
For the landowner, a bargain sale combines the income-producing aspects of a land sale with the tax benefits of a donation. The difference between the fair market value (as determined by an appraisal) and the sale price is treated as a charitable contribution. The seller’s capital gains tax will be lower. The gain will be the difference between the reduced sale price (not the fair market value) and the donor’s pro rata tax basis. The seller can take a charitable deduction to reduce the seller’s income taxes.
How can I find out more information?
Call the main office at (607) 275-9487 or write or e-mail the Finger Lakes Land Trust to talk with a staff member about your conservation goals.
