Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Contribution house sale

judys3
Level 5

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.

0 Cheers
1 Best Answer

Accepted Solutions
TaxGuyBill
Level 15
3 Comments 3
sjrcpa
Level 15

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 5

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.

0 Cheers
TaxGuyBill
Level 15