HOW DO I SHOW A CHARITABLE DONATION OF STOCK

[ALA]

HOW DO I SHOW A CHARATABLE STOCK DONATION IN THE AMOUNT OF 27000.00 ON AN INDAVIUALS TAX RETURN?

[sjrcpa · Accepted solution]

Form 8283

[George4Tacks]

Just like any other Goodwill or Salvation Army type of charitable deduction. If it is a stock traded on the open market, nothing special to do for the large number. The date of contribution will determine the FMV, if IRS were to take the time to look it up.

See the instructions for 8283

Capital gain property. Capital gain property is
property that would result in long-term capital gain if it
were sold at its FMV on the date it was contributed. For
purposes of figuring your charitable contribution, capital
gain property also includes certain real property and
depreciable property used in your trade or business and,
generally, held more than 1 year. However, to the extent
of any gain from the property that must be recaptured as
ordinary income under section 1245, section 1250, or any
other Code provision, the property is treated as ordinary
income property.
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
You usually may deduct gifts of capital gain property at
their FMV. However, you must reduce the FMV by the
amount of any appreciation if any of the following apply.
• The capital gain property is contributed to certain
private nonoperating foundations. This rule does not apply
to qualified appreciated stock.
• You choose the 50% limit instead of the special 30%
limit for capital gain property given to 50% limit
organizations.
• The contributed property is intellectual property (as
defined later).
• The contributed property is certain taxidermy property.
• The contributed property is tangible personal property
that is put to an unrelated use (as defined in Pub. 526) by
the charity.
• The contributed property is certain tangible personal
property with a claimed value of more than $5,000 and is
sold, exchanged, or otherwise disposed of by the charity
during the year in which you made the contribution, and
the charity has not made the required certification of
exempt use (such as on Form 8282, Part IV).

AND for description, for securities, include the following:
• Company name,
• Number of shares,
• Kind of security,
• Whether a share of a mutual fund, and
• Whether regularly traded on a stock exchange or in an
over-the-counter market.

[Terry53029]

Are you going to charge for the CE lesson ? 🙂