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Charitable Bargain Sale: FAQs

What if the property has a mortgage or other lien on it?

The mortgage or lien can and should be paid off prior to the bargain sale or with the sale proceeds received by the previous owner. This produces the best tax benefit to the donor/seller. If the charity assumes the lien or mortgage then this is considered taxable income to the donor/seller.


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Office of Gift Planning
National Audubon Society
225 Varick Street, 7th Floor
New York, NY 10014
212-979-3033
plannedgifts@audubon.org

Your team
Rose Tesone, left, Audubon’s Bequest Manager and Shari S. Kolding, Audubon’s Director of Gift Planning. Photo: Luke Franke/Audubon