Yes, here is how you will enter. If in Turbo Tax online.
Say yes on the next screen when it asks if you made charitable donations. You will say yes.
The next screen you can add money and Mileage and travel expenses
The Donor Advised Stock fund is like money so you will select Stock.
Thanks for the reply. I think I am more stuck on the 1st question below, and if that answer is something other than "No", I'd have questions with the following numbers below as well. Thank you!
1. The first question I'm seeking help with is whether or not "I attached conditions on a donation" (such as "specified how the donation should be used", "allowed someone other than the charity to receive income from the donation"). If I should select "No", I could just enter as a donated stock and I'm good to go. But if I did, I need to enter the donation as an "item" and there are other questions I wonder how I should answer such as:
2. Did I restrict, temporarily or permanently the use of the stock donated to Fidelity Charitable? (I would think no)
3. Did I place restrictions limiting the stock I donated to Fidelity Charitable to a particular use? (possibly yes since I can choose which 501c3 it could go to?)
4. If yes to 3, Describe the special use restrictions: (not sure what I would put here)
5. Describe the physical condition when donated: excellent :happy
6. Does this item need an appraisal: Hope not
7. Amount received from bargain sale: Leave blank
8. Enter average trading price: I assume this the FMV of all the shares as stated on Form 8283
9. Enter the donation type: 30% charity I assume
Thanks for any additional insight
Yes, if you are certain you do not have those restrictions that are prescribed above, IRS wants to know this because they want to be reasonably assured that you had all rights to assign ownership rights to the charity.
Yes, all donor advised funds are to be donated to 30% charities.
So am I correct to assume if it is a Donor Advised Fund that acts as it is intended by IRS guidelines, I would not have any controls or restrictions of appreciated stock donation, and therefore, I can simply add this in Turbo Tax as a stock donation, instead of an Item donation?
That is correct. Here is an IRS link that has information that you might be interested in.
So I entered as Donated Stock in turbotax and later selected it would be considered a 30% charity.
However, Turbotax ended up limiting my stock donation to 20% of AGI which I found out in the "Charity Limit 1" worksheet.
How can I enter my appreciated long term stock donation in turbotax and have turbotax limit it to 30% (instead of 20%) of AGI as should be done for Donor Advised funds / DAF?
There is an issue with the contributions deduction and TurboTax is working to fix it. We do not have an estimated date of correction, at this time. I suggest you check back often to see if the correction has been made.
There is a problem with the Contributions section of the Itemized deductions and also the above the line $300.00 deduction. Because of the many changes due to the CARES Act, IRS is still developing the forms and publications on this issue. Last update was January 13th where everything is still in draft. Once IRS finalizes the forms, we will be able to update TurboTax to accurately reflect your Contributions deduction.
Here are some of the changes due to the CARES ACT
The new legislation allows tax deductions on two types of charitable gifts. First, it allows up to $300 given to a qualified charity to be claimed as an above-the-line deduction. After the Tax Cuts and Jobs Act, which went into effect in 2018, increased the standard deduction, many taxpayers had less incentive to donate to charities. Instead, they took the standard deduction and stopped itemizing.
For taxpayers who will itemize deductions, the CARES Act effectively suspends the limit on deductions for cash contributions to public charities for 2020. “That allows individuals to completely wipe out their AGI, and their tax liability, with a charitable contribution.
I have the same problem: entering charitable donations to a Donor Advised Fund; TurboTax puts it down as a 20% AGI donation. It needs to be a 30% AGI donation, but I see no way of changing it. How does one enter a charitable donation to a DAF as a 30% AGI donation?
One question I need answered is: if I inherited the stocks via the death of a parent. I followed the steps in TT but I got into a loop when entering the donation of a specific stock to the DAF.
Any thoughts?
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.
It could be. There are limitations if the donated stock was held one year or less. How long have you held the stock that you transferred to the donor advised fund? Moreover, because charitable deductions are itemized, if your standard deduction is greater than your itemized deductions, TurboTax will default to applying the standard deduction.
The mutual fund Purchase Date was 8-4-2011 - Purchase Price $61.64/share - Total Purchase Cost $2157.67.
The mutual fund went into the DAF in November 2021 in the amount of $14,000 in the charitable contributions section in Turbotax. This initially lowered our taxes owed in Turbotax but then I was asked to enter the cost basis, which kicked us back to the standard deduction. Does the Donor Advised Fund go into the charitable contributions or elsewhere like form IRS Form 8283? Please help.
Yes, your donated stock is entered in Charitable Contributions.
TurboTax prepares Form 8283 for you, based on your interview entries. Be sure to indicate 'none of the above' on the page asking about restrictions for the donated stock.
You will see the FMV of your donation on the Charitable Organization Worksheet and Form 8283. You get the FMV of the stock donation reported on Schedule A.
If you're using TurboTax Online, you can't see the worksheets until you pay for your return. The fact that your tax is going up/down may not be due to your charitable donation cost basis entry.
The increased/decreased income may disqualify you from a credit you were receiving previously.
You can transfer an online return to desktop/download to have access to the forms as you prepare your tax return.
Hi MarilynG,
Turbotax did not generate form 8283 for me. My taxes were submitted now I need to do an amendment. Can you help me with this please?
Since you already filed your taxes you need to wait until your return is processed before you can amend it. Once you receive your refund you will know that it has been processed. However, do not assume that just because your check is cashed that your return has been processed. If you owe, you can pull a transcript to check to see if your return was processed.
To request either transcript online, go to www.IRS.gov and look for our new online tool, Order a Transcript. To order by phone, call 800-908-9946 and follow the prompts in the recorded message.
I donated appreciated stock to DAF. The donated stocks showed up in my 1099-B as sold and report capital gain. How do I complete the TT screen from Wages & Income>Investment Income>Stocks>? After several screens, one pops up for "Select any less common adjustments that apply." I think I should select "Some (or all) of the proceeds do not belong to me". Is that right? I know I have to complete Sch A for the charitable deduction.
Thanks!
Schwab's confirmation statement for me in 2021 had this information:
The tax deduction for donating shares held for more than one year is generally the fair market
value of the shares on the date of the contribution. The deduction for donating shares held for one year or less is generally limited to the lower of cost basis or the fair market value on the date of contribution. Please consult your tax advisor for specifics on your own tax situation.
IMHO: gain or loss does not matter; it's just the dollar value of your contribution.
I am using TT download. I entered stock contributed to DAF (as non-cash contribution of publicly traded stock), selected "none of the above" for the restrictions, and indicated the stock will be used for the mission of the DAF. Nonetheless, TT only credits the value of the stock when I purchased it, not the FMV. How can this be fixed?
When non-cash donations are made, usually the FMV is used because this is usually lower than the cost of the donation. I assume your FMV of the stocks are higher but unfortunately, if the amount you originally paid for the item is less than the FMV, you must use the original cost of the item.
The IRS does not make distinctions between different property classes.