So this is a bargain sale. A bargain sale occurs when a taxpayer sells property to a charitable organization for less than its fair market value. The fair market value less the value returned is a charitable gift.
The charitable deduction is also limited to 30% of AGI, with a five-year carry forward. In some cases, the income tax savings may be spread over one to six years.
Thanks again for the question @John Patrick10
All the best,
Marc
Employee Tax Expert
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