Bargain Sale. A conservation easement sale in which the landowner donates part of the conservation easement value by accepting a purchase price less than appraised fair market value.
Bargain Sale. Purchaser acknowledges that it is Seller's intent to effectuate a "bargain sale" of the Property, i.e., a sale to a charitable organization at a price below fair market value wherein the difference is considered a charitable contribution under applicable sections of the Internal Revenue Code. Seller acknowledges that the substantiation of a charitable contribution deduction rests exclusively with Seller but for Purchaser's execution of Internal Revenue Service Form 8283.
Bargain Sale. Purchaser acknowledges that it is Seller’s intention to effectuate a “bargain sale” of the Property to Purchaser, i.e., a sale of the Property to Purchaser, who is a qualified charitable organization, at a purchase price below the fair market value of the Property, wherein the difference between the purchase price and the fair market value of the Property (to wit, the amount of $494,999 (referenced in this Agreement as the “Charitable Contribution Amount”) is considered as a charitable contribution by Seller to Purchaser under the Internal Revenue Code of 1986. Seller acknowledges and agrees that the substantiation of the charitable contribution deduction will rest exclusively with Seller. Purchaser shall, without assumption of risk or additional cost to Purchaser, assist Seller in the substantiation of the charitable contribution deduction, and, upon Closing, Purchaser shall execute the Donee Acknowledgement section (Part IV) of Internal Revenue Service Form 8283, wherein Purchaser acknowledges that it is a qualified organization under Section 170(c) of the Internal Revenue Code and that it received the donated portion of the Property. Also, Purchaser will cooperate with Seller in obtaining all available State of New Mexico tax credits, including without limitation by submitting applicable applications to the New Mexico Mortgage Finance Authority and any other necessary public body. The obligations of this subparagraph 1.2(d) shall survive the Closing.
Bargain Sale. Buyer is an organization described in Sections 501(c)(3) and 170(b)(1)(A)(vi) of the Internal Revenue Code; therefore, Seller may be entitled to consider the amount by which the fair market value of the Property exceeds the sale price for the Property as a charitable contribution of property to the extent permitted by law, but Buyer shall have no responsibility or liability for the determination of the amount or availability of any income tax deduction which Seller may claim. The Conservancy has provided Seller with a summary of its internal policy regarding gifts of interests in real estate and will sign documentation required by the IRS to substantiate a charitable contribution when the conditions stated in the policy are met. .
Bargain Sale. It may be the Seller’s intent to sell the Property at a “bargain-sale” arrangement and make a charitable contribution equivalent to the difference between the true fair market value of the Property, as determined by a qualified appraiser, and the agreed upon purchase price stated in this Option. The Conservancy makes no representation or warranty that this transaction will qualify as a “bargain sale” under state or federal law. Sellers agree that the cost of any appraisal update is their responsibility and that Seller shall not be entitled to any future adjustments to the Purchase Price on the basis of any appraisal update.
Bargain Sale. Seller and City acknowledge that the present fair market value of the City Premises is One Million Seven Hundred Thousand Dollars ($1,700,000.00), based upon the appraisal referenced in Exhibit E attached hereto (the "Appraisal"). Seller and City further acknowledge that it is their intent to effectuate a "bargain sale" of the City Premises to the City, i.e., a sale to a municipality at a price below fair market value wherein the difference is considered a charitable contribution for the Seller under applicable sections of the Internal Revenue Code. City and Seller acknowledge that the substantiation of a charitable contribution deduction rests exclusively with Seller but for City's execution of Internal Revenue Service Form 8283. City agrees to execute, at Closing, or thereafter as requested by Seller, an Internal Revenue Service Form 8283 and/or any other applicable Federal or State tax form, to substantiate the Seller's charitable deduction based upon the above-stipulated fair market value for the City Premises. Seller shall indemnify, defend and hold the City harmless from and against any and all tax, or other, liability which the City may incur solely by reason of any final, non-appealable determination by the Internal Revenue Service that such Internal Revenue Service Form 8283 contained any false statement by Seller.
Bargain Sale. Selling a conservation easement at a discounted price "a bargain sale" can also be an income tax incentive to the seller. Other important information is provided below: Conservation Value – To qualify for tax incentives, the easement must have "conservation value" and be donated in perpetuity for "conservation purposes.” (§170(h)(4) Internal Revenue Code) Conservation purposes include: Protection of relatively natural habitat of fish, wildlife or plants; Preservation of a historically important land area or a certified historic structure (listed in the National Register or located in a registered historic district); Protection of open space, including farmland and forest land for the scenic enjoyment of the general public or pursuant to clearly delineated federal, state or local government conservation policies; and Protection of land areas for outdoor recreation and education of the general public. Deed of Conservation Easement - The easement describes in detail the property being encumbered, the stated conservation purpose, the protection of the property in perpetuity, any public access allowed, reserved rights, provisions for subordination and allocation of proceeds. CCC will be pleased to work with you to design a conservation easement that reflects your plans for your land’s future and that protects its important conservation values. Conservancy for Xxxxxxx County – Founded in 1996, CCC is a local nonprofit land trust actively working to protect and preserve Xxxxxxx County’s open space, productive farmland, and natural and historic resources. CCC’s stewardship program plays a critical role in monitoring land preservation projects. The CCC and MET work closely together to help landowners preserve land. To date, nearly 1,700 acres of conservation easements have been granted to CCC and many are co-held with MET. CCC has been a Land Trust Alliance member since 1997. Appraisals - To use tax incentives, you will need to hire a qualified independent real estate appraiser to determine the gift value of the conservation easement. (§1.170A -14(h)(3)(i), (ii) and §1.170A-13 Treasury Regulations) For more information, please call 000-000-0000, email xxxx@xxxxxxxxxxxxxxx.xxx, visit xxx.xxxxxxxxxxxxxxx.xxx or write P.O. Box 1358, Waldorf, MD 20604.
Bargain Sale. The Foundation will enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of the Foundation. All bargain sales must be reviewed and recommended by the Investment Committee and approved by the Board of Directors. Factors used in determining the appropriateness of the transaction include: • The Foundation must obtain an independent appraisal substantiating the value of the property; • If the Foundation assumes debt with the property, the debt ratio must be less than 50% of the appraised market value; • The Foundation must determine that it will use the property, or that there is a market for sale of the property, allowing sale within 12 months of receipt; • The Foundation must calculate the costs to safeguard, insure, and expense the property (including property tax, if applicable) during the holding period. Business Interests Donors may make gifts of interests in business entities (i.e., closely held marketable securities, limited partnership interests, interests in limited liability companies). These can be accepted if the Foundation assumes no liability in receiving them. In evaluating a proposed gift of such assets, the Gift Acceptance Committee may consider: • the probability of conversion to a liquid asset within a reasonable period of time; • the projected income that will be available for distribution and administrative fees; • the nature of the business from which the asset is derived. A completed IRS Form 8283 (“Noncash Charitable Contributions”) and/or a letter from the attorney drafting the partnership agreement or articles of organization must accompany gifts of limited partnership interests or interests in limited liability companies, providing the following information: • Independent appraisal of the value of the subject entity and a statement of the percentage of the entity to be gifted to the Foundation; • Assurance that the Foundation will be held harmless in the event the entity becomes bankrupt or is otherwise unable to satisfy its obligations; • Assurance that the Foundation will be held harmless in the event the entity is sued. The Foundation does not accept gifts of general partnership interests due to potential unlimited liability. When an interest in a business entity cannot be promptly liquidated, and the documented present value of the interest is $20,000 or more, that interest may be credited to a new, named component fund at CFMC. The fund may be treated as an advised, desi...
Bargain Sale. The Transaction is a bargain sale where the Seller is selling the Property to the Buyer for less than the Property’s fair market value (the difference between the Purchase Price and the Property’s fair market value, the “Gift”). The Gift will be a charitable donation from the Seller to the Buyer. The Seller may obtain and pay for an appraisal to determine the Gift and take the other steps under the Internal Revenue Code to claim the benefit of any tax deduction the Gift may generate for the Seller. Any such appraisal is for the Seller’s own benefit and use and it has no obligation to share it with the Buyer. The Buyer will obtain its own appraisal of the Property (the “Buyer Appraisal”). The Buyer Appraisal is for the Buyer’s internal purposes and is inapplicable in determining the Gift unless the Seller wants to use it for that purpose, which it may do in its discretion. The Buyer will ensure that its agreement with its appraiser does not preclude the Buyer from sharing the Buyer Appraisal with the Seller. If the Seller wants to use the Buyer Appraisal for purposes of determining the Gift, the Buyer will cooperate with the Seller in attempting to obtain the appraiser’s consent for the Seller to use the Buyer Appraisal for that purpose. In the event the Seller wishes to obtain its appraisal after Closing, the Buyer will reasonably cooperate with the Seller and the Seller’s third party appraiser to permit such appraisal to be completed.
