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Level 6
March 12, 2025
Solved

Contribution house sale

  • March 12, 2025
  • 2 replies
  • 14 views

A tax customer sold an inherited house.  He reduced the price of the house as a charitable contribution to the purchaser.  The purchaser is a church.   Can I add the amount of contribution to the basis or should I enter the contribution on Schedule A.  The taxpayer has never been able to file long form so was trying to avoid a letter questioning this.

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2 replies

sjrcpa
Level 15
March 12, 2025

How much was the reduction?

It's a part sale and part charitable contribution.

I believe the correct terminology is bargain sale to charity. Research.

The more I know the more I don’t know.
judys3Author
Level 6
March 12, 2025

Per the seller disclosure statement

sales price $170,000.00

donation $40,000.00

Total Sales price $210,000.00

The church gave him  a letter of contribution to him for $40,000.00 at the signing.