THe value method on 8283 Section A defaults to Comparative Sales when it should be Average Price then i get an error message if i manually change. How do I fix?

[slcfan]

These are publicly traded securities donated to a DAF that reported the valuation method as Average Price that do no need to be on Section B.

[MarilynG1]

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).

"Treasury Regulation § 20.2031-2 Valuation of stocks and bonds.

(a) In general. The value of stocks and bonds is the fair market value per share or bond on the applicable valuation date.

(b) Based on selling prices."

In other words, Comparative sales. TurboTax doesn't offer any alternative for the method to determine the value because that is the method that is required by the IRS. 

@slcfan 

[slcfan]

Thanks, that is useful.  The DAF sponsor used the term average daily price but if that the same as Comparitive Sales with the IRS, perfect!

[vasto7]

I think the confusion of the OP is the same as mine.  The help that TT gives on this screen below implies Average sale price should be selected from the dropdown choices.  However, if this is selected it does not populate form 8283.  Comparative Sales will appear.

[TinkerToyRonnie]

The same thing happens with the desktop (download) Mac version of TurbaTax Deluxe + State.  When you select Average Share Price when you enter the stock donation it shows up as Comparative Sales in Form 8283.  

[MonikaK1]

Another user reported this issue and I was able to confirm it as well. I am reporting it for further investigation. 

In order for us to troubleshoot this issue, you can 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

Here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

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.
 

[Edited 02/14/26| 7:12pm PST] 

@vasto7 : (edited) 

[vasto7]

[MonikaK1]

Thank you for providing the token number. We are looking into it.

[MonikaK1]

I reviewed the diagnostic file provided. I confirmed and reentered the valuation method for the stocks donated as Average Share Price, and the Form 8283 still lists the method as Comparative Sales. We are forwarding the issue for further investigation and programming.

In the meantime, since you were able to enter the valuation figures for the method you chose, the error in the labeling of the method on Form 8283 doesn't affect your tax.

@vasto7 

@TinkerToyRonnie 

[MonikaK1]

I reviewed the diagnostic file provided. I confirmed and reentered the valuation method for the stocks donated as Average Share Price, and the Form 8283 still lists the method as Comparative Sales. We are forwarding the issue for further investigation and programming.

In the meantime, since you were able to enter the valuation figures for the method you chose, the error in the labeling of the method on Form 8283 doesn't affect your tax.

@vasto7 

[vasto7]

Ok.  Thank you for looking into this and working toward a correction.

[TinkerToyRonnie]

Thank you!

[Noiedef55]

I have the same problem. IRS instructions specifically state that for donated securities you must use average selling price on the date of donation. It is an option on the drop down menu, but if you select it, the program defaults to Comparative Sales, which is NOT the same thing. Why have something on a drop down menu and then make you unable to use it? I will attempt to report it.