Bargain-Purchase of Land
How 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-purchase. 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-purchase 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 and can significantly reduce any capital gains taxes payable on the sale.
How can I find out more information?