How to best record a stock donation?


Bernhard Kohlhaas

Hello all,

How do I best record a stock donation (of long-term held stock) in
Money? There's no capital gains, but the value of the donation is
tax-deductible as a charitable donation.




Dick Watson

Best? Who knows?

I'd think hard about something like a Remove Shares, an unassigned income or
maybe some tax-neutral income category (Other Income:Charitable Stock
Disposition???) somewhere and then a charitable donation expense. I'm not
sure whether you can coerce the remove share to associate with specific
lots. If not, this would have downstream consequences.


Ha! I would have thought there was a SAP module to do this. They have a
module for everything!

Bernhard Kohlhaas

Thanks for the suggestion. That seems about the only way of doing it.
"Remove Shares" does allow to specify specific lots, so no problems there.




Roy Harrill

Another approach to consider. Let's say you give a charity stock worth $400
that you bought for $100.

To book this in Money, you could record a hypothetical "Sell" using the cost
basis ($100) as the selling price (thus Money shows no gain/loss on the
"sale") and Transferring the "proceeds" ($100) to a dummy balance sheet
account previously set up for "wash" type transactions. Then, go to the
dummy account and do a split entry to record an expense for the full value
(tax-deductible amount) of the stock ($400), and an income amount to
Investment Income:Tax-Exempt Charitable Gift for the stock's increase in
value ($300). This leaves a net cash outgo ($100) from the dummy account
that zeroes it out.

This Sell method records the full tax-deductible amount as an expense
whereas the Remove Shares would show only the appreciation amount ($300) as
an expense, due to the fact that Removing Shares does not move the stock's
cost basis amount from the investment portfolio to an expense account. The
Sell method also does not cause any problem with specific lots.


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