Skip to main content
Text Resize
Print This
Email This
Calculate Plan
eBrochure
Contact Us
View Video
Mobile Video Button

Bargain Sale

Do you have property that you would like to sell? Are you looking for a strategy to reduce your income taxes? A bargain sale might be the right strategy for you.

Bargain sale transactions, particularly those that deal with property, are contingent on the Foundation's Gift Acceptance Policy. The Gift Acceptance Policy helps OU fundraisers and donors discern which gifts and/or gift vehicles will be accepted or considered by the OU Foundation. Essentially, the Foundation accepts gifts that are consistent with the core educational values of the University and are in compliance with federal statutes and rules that stipulate the conditions under which contributions are tax favored and compatible with the Foundation's tax-exempt status. To learn more about the policy, please contact Keith Peters at 405-321-1174 or kpeters@ou.edu.

Flowchart: Donor sells property to OU below fair market value and claims a charitable deduction for the difference between fair market value and the sale price.

Benefits of a bargain sale

  • Avoid capital gains tax on your charitable gift
  • Receive a tax deduction that will reduce your tax bill this year
  • Take the cash received from the sale and reinvest it to create future income, save for retirement, buy new property or achieve other financial goals
  • Help University of Oklahoma Foundation further our important charitable work

How a bargain sale works

  1. You sell University of Oklahoma Foundation your property for a price less than fair market value.
  2. You receive cash from the sale.
  3. You can take a charitable deduction for the value of your gift which is the difference between the fair market value of the property less the sale price.
  4. While you may owe some tax on the sale proceeds you receive from University of Oklahoma Foundation, the charitable deduction from your gift could offset some, most or all of your capital gains taxes associated with the sale.

More on bargain sales

A bargain sale may be accomplished even if you have a mortgage on your property. Because relief from indebtedness can have tax implications, please consult with your tax advisor prior to completing a gift of a bargain sale.

Contact us

If you have any questions about a bargain sale, please contact us. We would be happy to assist you and answer any questions you might have.

scriptsknown