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Ask Chad Schoch Your Own Question
Chad Schoch
Chad Schoch,
Category: Tax
Satisfied Customers: 19
Experience:  CPA at Sheridan Healthcare
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I am a charity. I want to buy a piece of property that's

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I am a charity. I want to buy a piece of property that's being sold on a short sale basis. Can I offer the bank to donate the property to the charity in return for a donation letter for the fair market value of the property? Assuming the FMV is significant (whatever that means), the bank could stand to realize a greater value by the donation than they would if I made a low-ball offer. But can banks even do that?
Customer: replied 23 days ago.
I'm not entirely sure this is a tax question -- I requested under "legal."If it's miscategorized, feel free to put it in the right category..

Good Afternoon - Please note that your question has been directed to the right tax expert! Let me read the question again and respond accordingly!

For your question - yes, banks are permitted to donate property although it depends on the specific bank. They will want to avoid discussing which option will be best for them because they will be walking the very fine line of tax evasion when you discuss purchase price/gifted value. If they were going to sell cheaper at a short sale then gifting at a higher value would be overstating the value of the asset. Again, banking policies will differ between each specific bank.

If I were you, I would ask the bank if they would consider gifting the property. If they don't, then I would proceed with your low-ball offer.

Please let me know if you have any other question. If you don't, and you feel you have received 5 star service, please rate me as so! If not, please let me know what else I can do to earn your 5 star rating!

Thank you,
Chad

Also note that this service is tax deductible as a professional expense!

Chad Schoch and 2 other Tax Specialists are ready to help you
Customer: replied 23 days ago.
Thank you. I think the generic-ish answer is exactly what I was looking for -- especially since I do not even know who the bank is in this particular case. There are several things about the property and the situation that don't add up and it's VERY early days in the process. All of that other stuff will iron itself out in due time, but I figured if the bank couldn't even do something like this, then there would be no reason to even ask the question. Now I know it's at least a good question and we'll see if the property is worth ever even getting to the point of asking it!And thanks on the business expense. I have used this service before for the charity and it has been a business expense worth spending on!

No problem at all! Glad I could help!