Do you know why I have to include the cost basis of a stock donation to a charity? I'm entitled to the fair market value on the day of the donation, so why the question?

Forum|Forum|7 years ago
June 3, 2019
1 reply
1 view

Why am I asked for the cost basis of a stock donated to a charity and held for over a year when using the turbo tax program? I'm entitled to the fair market value on the day I donate it. What do I put in the box to assure I get the FMV I'm entitled to?

TurboTax Deluxe Windows

TomK2023

Level 15

If you've held the stock for more at least one year, you are correct, and you will be able to deduct the Fair Market Value of the donation.

However, if you have held the stock for less than one year, it is short term capital gains property, and you can only claim your basis as a deduction.

As long as you've held the property for one year, the amount that you enter for the basis will not affect your deduction.

For more information - Publication 526 (2017), Charitable Contributions: https://www.irs.gov/publications/p526

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jw_dw

Level 2

I have held it for 15 years but turbo tax is decreasing my reduction because of the capitol gains. Is this new?

DBergie

Level 3

I AM SEEING THIS OCCUR AS WELL. ONCE I ENTER THE COST BASIS, MY REFUND AMOUNT DECREASES.

I CANNOT FIGURE OUT WHY THIS IS HAPPENING. IF I ENTER THE DONATED VALUE AS THE COST BASIS THE REFUND AMOUNT DOES NOT CHANGE. SEEMS TO BE REDUCING THE AMOUNT OF MY DEDUCTION:(