Bargain Sale Gift
An example of a bargain gift will serve to show how such a gift would benefit the Calumet Theatre. Mr. and Mrs. Blek owned a security they purchased for $13,000 twelve years ago. It now can be sold on the open market for $41,000 but they would like to benefit the Calumet Theatre by selling the security to the Theatre for the original purchase amount. The Theatre then buys it and sells it to buy new lights. The Blek’s get back their original investment, but the Theatre gains a lighting system that will benefit future Theatre patrons. Tax counsel should be consulted to determine all of the tax benefits that accrue to donors of bargain sale gifts.