Allowable deduction for inherited stock

[C3000]

In 2020 I made a charitable donation of some stock that I had inherited in late 2019.  Inherited stock receives long-term capital gain treatment when sold regardless of how long it was held.    Does it get similar treatment if it is donated?   That is, even though I held the stock for less than one year, can I deduct the entire FMV on the date of the donation rather than just the cash basis determined on the date that I inherited the stock?  Thanks

[Bsch4477]

Deduct  the entire FMV on the date of the donation. 

[C3000]

Thanks for your reply.  It matches what I thought was correct.

I am having difficulty getting turbotax to use the FMV on the date of donation as the amount of donation.

Turbotax is using the amount that I entered as the basis value on the date of death as the amount of my deduction.   I entered the date of death as the date I acquired the stock and the value on that date as the purchase price and entered inheritance for How Acquired.  Any idea what I am doing wrong?

Thanks

[Bsch4477]

I researched this and you are correct that it is a bug. The work around is to select “Items “ when asked what you donated, I’ll value them, date of donation, publicly traded stock, describe the stock, put in value at date of donation, method is present value, for purchase price use the same amount as the donation value, date acquired is date of death, how acquired is inheritance. Now the amount donated should be correct. 

[Bsch4477]

I did another test using $1000 for purchase price and $2000 for donation and the program went to a screen I hadn’t seen before acknowledging the increase in appreciation and asking about the use of the donation in the charity’s function. Then it allowed the full $2000 donation. Do what you have to do to force the full donation. 

[C3000]

Thanks for your help, but I am still having problems getting the correct full-value of the donation.  The issue seems to be that the date of death was less than 1 year before the date of my donation.  I experimented with different dates and if the date of death is more than a year prior, it seems to work correctly.   But as I understand the rules, stocks obtained by inheritance are always treated as if they were held at least one year.

If my interpretation is correct, this is a serious bug in turbotax

[RayW7]

I am in agreement with the previous answers and have a suggestion.  When asked when the stock was acquired type in the word "inherited".  

[C3000]

Thanks for your reply and suggestion - 

The field for how acquired is a drop down box rather than a text box in which to type.

I am selecting "inheritance" as the drop down option.

I have figured out a a couple of kluges that give me the desired result, although when I use them I am not technically entering the correct information.

1) As Bsch4477 suggested, if I enter the donation value as the purchase price instead of entering the value of the stock on the DOD, then the correct amount is deducted.

2) If I enter VARIOUS instead of the DOD for the date aquired, then the correct amount is deducted.

This is the first year I have used turbotax and it seems to have been the wrong decision to do so.  I didn't have these kinds of issues when I used a competitor's tax software previously.