A gift with a return for Michigan Tech and you
A bargain sale gift is basically a sale of property to the Michigan Tech Fund for less than its fair market value. The advantage of such a gift is that you receive an income tax deduction on the difference between the property’s true value and the price paid by the Michigan Tech Fund. This can be an effective way to dispose of appreciated property on which you otherwise would owe a significant capital gains tax. Because unrestricted funds of the Michigan Tech Fund are used, a bargain sale is most appropriate when the property is desired by Michigan Tech or easily converted into cash through a sale.
Contact the Office of Gift Planning for more information.
Benefits of bargain sale gifts
- Immediate income tax deduction for value of property exceeding sale price
- Avoidance of capital gains tax on value of property exceeding sale price
- Significant support for Michigan Tech and cash back to you