Method used to value common stock donations

[JCS52]

Why does TurboTax show the valuation method for common stock donations made from purchased securities as "Comparable Sales", but common stock donations from inherited securities as "average price"?

[AmyC]

Tax rules. Purchased stock is based on comparable sales or FMV. Inherited securities have a step up basis usually. The average price method is to help simplify things.

We comply with IRS rules regarding how to determine the fair market value of donated securities based on their acquisition method (purchase vs. inheritance).