When you gift through a charitable gift annuity, you can only claim a charitable deduction in the year you made the gift. Therefore, I am not sure what you mean by "How do I enter the first year of a charitable gift annuity of appreciated stock?" There would only be one year that you would be able to take a deduction.
The amount reported as a deduction on your Form 8283 should not be the full amount of the appreciated stock you gave to the charity. This is because, with a charitable gift annuity, you also receive a benefit in the form of a fixed payout for the rest of your life. Ordinary, when you give appreciated stock to charity, you would receive a deduction of the fair market value of the stock. However, since you gave the stock as a charitable annuity, your deduction is calculated by taking the full amount of your gift and subtracting the present value of all the payments you’re expected to receive during your lifetime. The amount of your deduction is usually provided by the charitable organization or its agent. This is the amount that should be reported on Form 8283 as a charitable deduction.
Later, when you start receiving the annuity payments, you will receive a 1099-R from the charitable organization that provides the amount you received for the year. These payments must be reported on your tax return every year and are considered taxable income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
