Discussion:Church Buying Home for Under Appraised Value
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Discussion Forum Index --> Tax Questions --> Church Buying Home for Under Appraised Value
| 9 August 2006 | |
| A church wants to buy my clients house for $50,000 under appraised value. The appraisal, last week, was $945,000 the church will pay $900,000. This is the personal primary residence in which there will not be over $500 gain so that piece doesn't come into play. They have been told that they can write off the difference as charitable contribution with form 8283.
Doesn't feel right to me but that's why I'm throwing the question to all you experts! | |
Chautauqua (talk|edits) said: | 9 August 2006 |
| I don't see any charitable contribution in this arrangement. | |
| 9 August 2006 | |
| Seen Kenneth & Etta Musgrave vs Commissioner - this was allowed even on an installment sale. TC Memo 2000-285. FMV 450K sale price 152K. | |
| 9 August 2006 | |
| As Dennis noted, a portion of the adjusted basis will be allocated to the charitable gift, and the balance of the basis will be used to compute the gain on the $900,000 sale. | |
| 9 August 2006 | |
| Hi to get the proper tax reporting as noted by dennis look up "bargain sale to charity". To answer the charitable question yes the $45k would be considered a deductible contribution. You need to now read the instructions to the form 8283 because the gift exceeds $5k one needs a qualifed appraisal by a "qualifed appraiser". Both the charity and appraiser need to sign the 8283 so there are mechanics the CPA needs to help the client with. bye | |
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