In 2021, we created a donor advised fund (DAF) from our brokerage account. Over $14,000 was transferred from our brokerage account into the DAF.
"Donors receive an immediate tax deduction of up to 30% of adjusted gross income (AGI) for gifts of appreciated securities, mutual funds, real estate and other assets, and can enjoy five-year carry-forward deduction on gifts that exceed AGI limits."
Where does the immediate tax deduction come from?
In Turbotax, I had to enter a cost basis for the DAF in the charities section which lowered the $14,000 amount to just the cost basis ($1500) . This brought us back to the standard deduction from itemizing. Is this the right way to do this? The IRS says to use from 8283 for non-cash charitable contributions which TurboTax did not have us do.
