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MequonCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2342
Experience:  CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
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if you have a building worth 18000000 and you sell it for(NNN) NNN-NNNN

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if you have a building worth 18000000 and you sell it for(NNN) NNN-NNNNto a non-profit who will give a tax credit for 600000 for the balance how does that work tax wise

Hi and welcome to JustAnswer:


If you have a building worth $1.8M and you sell it to a charity for $1.2M it is called a bargain sale. Simplistically, you have a gift of $600K and you have a sale of 2/3's of the building. Thus you will allocate your basis between the gifted portion and the selling portion. You will report a gain on the 2/3s you sold. See IRS Publication 526 page 13 "Bargain Sales" for complete details (Link below).

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