judys3
Level 7
03-12-2025
03:31 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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.
Best Answer Click here
Labels
sjrcpa
Level 15
03-12-2025
03:50 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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.
judys3
Level 7
03-12-2025
03:54 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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.
TaxGuyBill
Level 15
