DAF donation of appreciated stock short/long

2 replies
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For the first time I donated appreciated stock to my DAF. I was unaware as was my custodian that donating short term positions was suboptimal. I am reading that if I try to enter mixed lots in TurboTax (download) that it will treat them as though all are short term and only calculate total cost basis value as a deduction. Is that true?

Secondly, even though only two stocks, I have 24 different lot transactions. Does each need its own entry?

Thanks, didn’t find a complete answer in other DAF discussions.

AmyC

Alumni - Intuit

1. Yes so you do not want to do that. Short term is painful since you only get the cost basis where long term gets fair market value.

2. No. You need to make two entries. One for long term stock held more than a year and one for short term stocks - held less than a year.

To enter the long term:

Date acquired: you can choose various and long term or you can enter the date of the most recent purchase that is long term.

Cost basis: total all long term lots

Value: Total FMV on date of donation

To enter the short term:

Date acquired: Use the earliest date of the short term group

Cost basis: total of all short term lots

Value: total FMV on date of donation

The program will apply the limiting factors and limit the deduction to your basis.

For the Form 8283 - if value over $5,000 you will need to provide more specific details -# of shares and other useful information.

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GrammiepopsAuthor

Level 2

Thank you. I believe I manged to enter it all correctly and TT seems to be applying the appropriate credit/write off for the long/short lots. Thanks again