Charitable Bargain Sale: FAQs

What if the property has a mortgage or other lien on it?

The mortgage or lien can and should be paid off prior to the bargain sale or with the sale proceeds received by the previous owner. This produces the best tax benefit to the donor/seller. If the charity assumes the lien or mortgage then this is considered taxable income to the donor/seller.


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Bequests left to Defenders are crucial to our ability to protect imperiled species and their habitats for generations to come. Have you included Defenders in your will or other estate plans?