TurboTax asks for the cost basis of your stock donation because the IRS does not allow deductions for amounts that would have been ordinary income or short-term capital gain if the stock was sold for its fair market value.
This may not apply to your donation, but the TurboTax screen is for all situations.
The IRS provides this example:
You donate stock you held for five months to your church. The fair market value of the stock on the day you donate it is $1,000, but you paid only $800 (your basis). Because the $200 of appreciation would be short-term capital gain if you sold the stock, your deduction is limited to $800 (fair market value minus the appreciation).
See Giving Property That Has Increased in Value
The $300/$600 above the line charitable contribution is limited to cash or check contributions. Donations of stock do not qualify.
See Cash contributions for individuals who do not itemize deductions
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
