Bargain Sale Gifts
A gift with a return for the Michigan Tech Fund and you
A bargain sale involves giving a gift of property by selling it to the Michigan Tech Fund for less than its fair market value. The advantage of such a gift is that it allows you to claim a charitable deduction on the difference between the property's true value and the price paid by the Fund. The bargain sale can be an effective way to dispose of property on which, because it has increased in value, you would otherwise owe a significant amount of capital gains tax. Because the bargain sale involves the use of unrestricted funds by the Fund, it is most appropriate when the property involved is desired by the Michigan Tech Fund or easily converted into cash through a sale.
Benefits of bargain gifts
- Convert property into both a gift to Michigan Tech and cash back to you
- Partial charitable deduction can offset capital gains tax