topic Stock Price Moved during in-kind donation process in Deductions & credits

Stock Price Moved during in-kind donation process

hameshatumkochaha — Wed, 17 Mar 2021 18:54:26 GMT

Hello,

In the year 2020, I donated stocks. I initiated the process with my broker on 12/23 who shows that on 12/24 the process was completed from my broker side and the stock was transferred. The stock was received by the recipient's broker on 12/28 and sold at $118.54. That's what the charity put in the letter. On 12/23, the stock moved between $130-$131. On 12/24, the stock moved around between $128-$129. for simplicity sake, let's just say, it opened at $128 and closed at $129. I want to use the correct donation amount. What stock price should I use to calculate the donation? The Charity is not willing to change their letter since they are saying they "received" $X based on $118.54 stock price at which their broker sold the stocks immediately after receiving.

Thanks,

Re: Stock Price Moved during in-kind donation process

DaveF1006 — Wed, 17 Mar 2021 19:28:38 GMT

According to this link from IRS.gov., the value of stocks and bonds is the FMV of a share or bond on the valuation date. So if the date of the contribution is the valuation day, According to this, the recipient broker received this on 12/28 so this the value that needs to be reported according to this IRS guideline.

Re: Stock Price Moved during in-kind donation process

hameshatumkochaha — Wed, 17 Mar 2021 21:52:51 GMT

Thanks for the response and the link to p561.

I am sharing another article that others might find useful down the line: https://www.marottaonmoney.com/how-do-you-value-a-gift-of-stock-for-taxes/#:~:text=Ordinarily%2C%20the%20date%20of%20contribution,prices%20on%20the%20valuation%20date.%E2%80%9D