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New Member
posted Apr 6, 2024 4:30:26 PM

Why the "I inherited my donation" question for stock donations?

My mother died in 2021.  I inherited some securities from her estate.  In 2023, my wife and I donated 45 shares of stock I had received to a charity. 

 

In declaring this gift, there is a "I inherited my donation" option, but if I select that option, I then have to go into Item donation and I am still asked for the purchase price, which makes NO sense because I am already telling TurboTax that I inherited the stock on the same screen.  Yes, I understand the cost basis is adjusted to the value on the day my mother died, but:

 

1.  Why does it matter whether I bought the stock or inherited it?  

2.  Why is it asking me for *purchase* price when I didn't buy it?  If it's wants cost basis, then say so.

 

Thanks,

 

TK

0 2 2529
2 Replies
Expert Alumni
Apr 8, 2024 3:17:56 PM

Here are the answers to your questions:

  1. The difference between buying and inheriting is that inherited property is automatically long term holding period. This makes a difference on your deduction amount.
  2. I tested and entered zero for the purchase price and continued through the screens. As we know, you did not purchase the stock. 

When I look at the Charitable Worksheet it shows the value I entered on the date of death.

Level 15
Apr 8, 2024 9:14:55 PM

"Why does it matter whether I bought the stock or inherited it?  "

 

See U.S. Tax Code.