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Not applicable
posted Jun 6, 2019 9:12:39 AM

Can I avoid trying to figure and show the basis of donated mutual funds?

I understand that in reporting mutual funds donated to a charitable gift fund, giving the basis is not necessary for shares held long term. But I see no place to indicate that they were long term. The purchases of the fund were made at various times, but all long term. How can I avoid trying to figure and show the basis?


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1 Replies
Employee Tax Expert
Jun 6, 2019 9:12:41 AM

You are correct the cost basis does not come into play for donated shares held long term. But the field box does require a number. 

You can see if the mutual fund company can give you the average cost of the shares. Or you can make an educated guess and put some number in the field box to advance in the software. 

The most important issue is to document that your donated mutual fund shares were long-term. Short-term shares would be limited to the cost basis for the donated value. As long as you can demonstrate that your shares were held for long-term, then your valuation amount should not be an issue.