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dplemaire
New Member

Do I eliminate LT Capital gain for appreciated stock donated to charity?

I donated appreciated stock directly to a recognized charity (some held less than 1-year, some over 1 year).  My 1099-B shows the stock sale proceeds and cost basis broken into ST and LT transactions and has been imported to TurboTax.  I am taking the FMV from the charity as a Charitable Contribution, but TT is showing the capital gains.  How do I eliminate the LT gain from income as I should not pay the tax on LT gain?

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2 Replies
Hal_Al
Level 15

Do I eliminate LT Capital gain for appreciated stock donated to charity?

You should  not get a 1099-B if you donated the stock directly to charity. Your broker has made a mistake (this happened to me once). They should correct it. However, if you sold the stocks and then gave the money to charity, you should get a 1099-B and have to report the sale and gains. Also, you would not be allowed to deduct FMV.

Also be advised that for stocks, donated to charity, that you held less than one year (short term), you do not get to deduct FMV, if FMV is more than you paid. You deduct the lesser of FMV or your cost basis.

Do I eliminate LT Capital gain for appreciated stock donated to charity?

How do you delete the imported item from Turbo Tax. They don't give me that option. Only edit/add, but I can't access that without signing up for the more expensive Turbo Tax option, which I don't need if this line item was gone.
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