Read Pt. 1 of “Partial Interest” Rule by clicking here. Last time, we developed an analogy to grasp the concept of a partial interest and also learned that a charitable gift of a partial interest is generally not deductible. The analogy was a handful of uncooked spaghetti strands. The handful represents full and complete ownership …Read More
The partial interest rule denies a charitable deduction for many different kinds of charitable gifts, including some that are valuable. The key to understanding this rule is to grasp the concept of a partial interest. An analogy helps. Imagine you’re holding a handful of uncooked spaghetti. This is analogous, for example, to holding legal title …Read More
A bargain sale is the sale of an asset to charity for a price less than the asset’s fair market value (FMV). For example, a donor sells stock or real estate having an FMV of $100,000 to ABC Charity for $60,000 (selling price, or SP). Remember the meanings of “FMV” and “SP.” This situation is …Read More