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Charitable Bargain Sales
(Gift example)

You're ready to move to a retirement facility across town. You know that you will need some of the equity in your current home for the entry fees there; however your home has appreciated significantly over the years, and you would like to use some of the excess value to fund a gift to the Archdiocese .

You decide to transfer your home to us through a charitable bargain sale. You secure an independent appraisal stating that the house is worth $1,000,000, and we agree to pay you $600,000.

What are your benefits?

Fair market value	$1,000,000
Cost basis	$200,000
Capital gain	$800,000
Selling price	$600,000
Charitable deduction	$400,000
Donation portion of transaction ($400,000 / $1,000,000)	(40%)
Capital gain related to donation (.40 x $400,000)	$160,000
Purchase portion of transaction ($600,000 / $1,000,000)	(60%)
Capital gain related to sale* (.60 x $800,000)	$480,000
* The first $1,000,000 of capital gain on your primary residence is excluded from tax, so neither portion of gain was taxed in this example. If you had donated a different piece of property, the $480,000 gain related to our purchase would have been subject to capital gains tax.

For more information

Email us, complete the personal illustration form, or call us at (206) 748-7984 or (800) 752-5902 so that we can assist you through every step of the process.