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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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.
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.
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