SECTION 170

Real Estate Donations, USA (RED) is a 501(c)3 nonprofit with offices in Detroit and Farmington Hills, MI.

Our focus is helping clients find solutions to their real estate challenges whether it’s:

Commercial
Industrial
Vacant Land

Residential
Functionally Obsolete

We use IRS approved tax strategies and specialize in the IRS Section 170 bargain sale. RED will help you achieve all of your philanthropic goals with more than just a simple cash donation.

Since this IRS regulation was made into law in 1917, the bargain sale has been used to help nonprofits and sellers. This law encourages philanthropy and has benefited charitable organizations for more than 100 years. The bargain sale allows taxpayers to make donations in the form of real estate while receiving cash.

THE BARGAIN SALE PROCESS

Property is sold to RED at a reduced price (below market appraised value)
Seller receives cash (determined on each transaction) and a tax deduction equal to the market appraised value less cash received
As a result, the seller typically yields a higher net profit than they could with a traditional sale
RED receives an acquisition that the buyer can keep or resell

The IRS Section 170 works well because of its simplicity and the benefits to both parties. The seller receives cash plus a tax deduction that can be used over 5 years. Sellers appreciate that they receive full market value for their property. RED receives the property at a lower price that they can resell to benefit our mission.