Donating Appreciated Stock


T

Tyler Franks

Is there a way to show a show the donation of appreciated stock? I can
"remove shares" but can't show as a charitable donation it seems. Any help?

Thanks
 
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C

Chuck

What I did was first remove the shares I donated from the account.
Then, I added the shares back into the account, at the cost at time of
the donation. Then, I sold the shares at the cost at time of the
donation. Finally, I withdrew the proceeds, showing the charity as the
payee, and allocated the transaction to my charitable contribution
category. End result, no capital gains shows in the capital gains
report, and the contribution shows up in my charitable contribution
category, to the charity receiving the contribution. Not sure if this
is what I was supposed to do, but it seemed to work for me. I'll figure
out how to handle it in TurboTax, when I do my taxes next year, but
Quicken seems to be showing the right stuff for the contribution.

Chuck
 
T

Tyler Franks

Thanks Chuck. It's not perfect, but it's better than I had. Turbo tax is
going to show this as a "cash" donation however, which will have to be
changed. But still ,your solution was elegant.
 
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E

Eric Bloch

I do not use TT but here is my simple approach:

1. Remove donated stock without affecting the cash balance in brokerage
account.
Your portfolio is now correct. Add memo to trans indicating where it
went.
2. Enter a Split deposit of $0.00 into my checking account:
A. Negative of donation of value of stock given to me by recipient OR
average of Opening and Closing price for day of transfer (IRS
method).
Category = Donation, Memo=where it came from.
B. Positive of donation of value into a Misc. Expense account that does
not have tax consequences.
Memo=Cash Offset.

A $0.00 Split deposit does not affect your cash balance but does properly
record the donation amount. A $0.00 transaction must be manually reconciled.

This type of transaction is also helpful when you make a CC donation before
Dec 31 that you actually pay on a CCi statement in the new year. The IRS
allows such a donation to count for either year and, if desired, you can
force Q. to include it in the previous year by entering a $0.00 Split
deposit on Dec. 31. These transactions will not affect your cash balance or
account reconciliation and you can add Memos for cross reference.

Example:
1. You make a $125 donation to the Red Cross on Dec 28, 2005 by CC.
2. You pay your CC on Jan 30, 2006 which includes the donation.
3. If you want the donation for 2006 enter it as a Donation in the CC
payment details split.
4. If you want the donation for 2005:
A. Enter it as a non-taxable event in your CC payment and add Memo to
see Dec 31, 2005.
B. On Dec. 31, 2005 enter a $0.00 split deposit in your checking
account.
(1) Negative $125 into Donations with Memo: CC payment on Jan.
30, 2006.
(2) Positive $125 into non-taxable expense account, Memo: Cash
Offset.

Eric
 

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