What is a Bargain Sale?

A bargain sale is a simple agreement in which you sell securities, real estate, tangible personal property, or other assets to West Wisconsin Land Trust for less than their current value.

Sale at fair market value needs little explanation, but two thoughts are important. The desire to sell at fair market value is hampered by the fact that most landholding agencies have limited funds available for the purchase of land and must be particular about their choices. Also, if the land is sold for its full value and if the property has appreciated since its purchase, the seller will be liable for income tax on the capital gain. This can significantly affect the net profit of the sale.