FundSvcs Community

Hi,

I'm looking for some advice on how to post a bargain sale/real estate gift. We purchased land which was considered a blighted property for $1 from the organization that owned it. Because the property was considered blighted, we were able to receive funding that will help pay to have the buildings on the land removed. We got an appraisal of what the land would be worth with the buildings gone. My boss would like us to book the value of the land without the buildings as a gift. Our accountant says this will cause a problem because it's actually less than the fair market value of what we purchased (which is the land with the buildings currently intact). As far as I know, we do not have an appraisal with the land and buildings included. Our account is working with the accounting firm that does our audit to get a valuation for her purposes.

My questions are, first, can we book anything as a gift since we "paid" for the property?  If we can post it as a gift of land/real estate, can I use the fair market value of the land without the buildings on it, or would I need to figure out what the fair market value of the property is with the buildings on it?

Thanks in advance for any help you can provide. Have a good weekend.

Allie

Hi,

I'm looking for some advice on how to post a bargain sale/real estate gift. We purchased land which was considered a blighted property for $1 from the organization that owned it. Because the property was considered blighted, we were able to receive funding that will help pay to have the buildings on the land removed. We got an appraisal of what the land would be worth with the buildings gone. My boss would like us to book the value of the land without the buildings as a gift. Our accountant says this will cause a problem because it's actually less than the fair market value of what we purchased (which is the land with the buildings currently intact). As far as I know, we do not have an appraisal with the land and buildings included. Our account is working with the accounting firm that does our audit to get a valuation for her purposes.

My questions are, first, can we book anything as a gift since we "paid" for the property?  If we can post it as a gift of land/real estate, can I use the fair market value of the land without the buildings on it, or would I need to figure out what the fair market value of the property is with the buildings on it?

Thanks in advance for any help you can provide. Have a good weekend.

Allie

Hi,

I'm looking for some advice on how to post a bargain sale/real estate gift. We purchased land which was considered a blighted property for $1 from the organization that owned it. Because the property was considered blighted, we were able to receive funding that will help pay to have the buildings on the land removed. We got an appraisal of what the land would be worth with the buildings gone. My boss would like us to book the value of the land without the buildings as a gift. Our accountant says this will cause a problem because it's actually less than the fair market value of what we purchased (which is the land with the buildings currently intact). As far as I know, we do not have an appraisal with the land and buildings included. Our account is working with the accounting firm that does our audit to get a valuation for her purposes.

My questions are, first, can we book anything as a gift since we "paid" for the property?  If we can post it as a gift of land/real estate, can I use the fair market value of the land without the buildings on it, or would I need to figure out what the fair market value of the property is with the buildings on it?

Thanks in advance for any help you can provide. Have a good weekend.

Allie