Form 8283

[Taxman1913]

I am using Turbotax Deluxe 2025 desktop version. Form 8283 is not populating correctly. For stock donations, in both the “Forms” method and the “Step-by-Step” method, I’ve input “Average Share Price” for the valuation method used but Form 8283 populates with “Comparative Sales”. If I try to override, I get an error message. In prior years, I could select Average Share Price for the stock donation valuation method. Average share price is the IRS suggested valuation method for stocks (IRS Publication 561). Does anyone know if, and when, Turbotax will be correcting this issue?

[MonikaK1]

Yes, as stated in Publication 561, If there is an active public market for the contributed stocks or bonds on a stock exchange, in an over-the-counter market, or elsewhere, the FMV of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. For example, if the highest selling price for a share was $11 and the lowest $9, the average price is $10. You get the average price by adding $11 and $9 and dividing the sum by 2.

I tried entering a donation of stock in another Desktop return (Home and Business) and found that if i chose to Override the entry on the Contribution Worksheet to use Average Price, the Form 8283 would also show Average Price. However, the user should not need to Override the entry.

I will report this issue for further investigation; however, it would be helpful if you could also send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Desktop users:

1. From the black bar at the top of your screen, select Online
2. Click Send Tax File to Agent
3. Click Send on the message that pops up
4. TurboTax will create a "sanitized" copy of your return information with no personal info
5. Post the full token number here in this thread

We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution.

[Taxman1913]

Hi MonikaK1 -

Thanks for your response.  As I had mentioned, I did an override on the Contribution Worksheet to reflect "Average Share Price" for the valuation method.  This resulted in "Average Share Price" being properly shown on my Form 8283.  However, the override on the Contribution Worksheet resulted in an error message.  My concern is that with the error message, I may be prevented from Electronic Filing.

As you stated, the user should not need to override the entry.  For stock donations, the user should be able to select "Average Share Price" for the valuation method and the Turbotax program should not default that to "Comparative Sales".

I appreciate you reporting this issue for further review.  This should be corrected so that "Average Share Price" can be selected as the valuation method for stock donations.