Stock Donation Average Share Price Processing Error

[TinkerToyRonnie]

TurboTax 2025 Deluxe + State

Mac Download Version

There is an error in the processing of a stock donation when Average Share Price is selected as the Valuation Method on the "Tell us about the stock you donated" dialog page.

Part III line 4 on the "Charitable Contribution Detail Worksheet" form is then shown as Average Price in red letters.

Part III line 7 on the "Noncash Contributions Worksheet" form is then shown as Comparative Sales.

This happens with each stock donation entered.  Even thought Average Price is shown in red  when you do an error check on the Charitable Contribution Detail Worksheet it says "no error."

[Mike9241]

Yep. Another bug. However, you may not be able to file since form 8283 has not been finalized. Same problem with W11 desktop deluxe version

[TinkerToyRonnie]

This is still not working correctly.  Average Share Price gets changed to Comparable Sales in the two worksheet forms created for stock donations. 

[MarilynG1]

This in due to IRS rules for stock valuation.  TurboTax uses Treasury Regulation § 20.2031-2, which states that the value of stocks and bonds is the fair market value per share on the valuation date, often based on selling prices (comparative sales).

Here's more info on Average Price vs. Comparative Sales.

@TinkerToyRonnie

[TinkerToyRonnie]

So are you telling me that according to the IRS Average Share Price is the same as Comparative Sales, and therefore TurboTax automatically converts the Average Share Price entry on the stock donation entry to Comparative Sales on Form 8283?

If so, why not make that clear on the stock donation entry dialog so that those of us that have used Average Share Price in the past aren't confused?  The charity that supplies me with confirmation of my stock donations always lists the Fair Market Value based on Average Share Price.

[MarilynG1]

No, Average Share Price is not the same as Comparative Sales.  Average Share may be used instead for inherited stock values, however.

Key Reasons for Using Comparative Sales Prices:

• IRS Compliance: The IRS requires that stocks, bonds, and donated items be valued at their Fair Market Value (FMV) on the applicable date, which often translates to using specific, comparative selling prices rather than averages.
• Accuracy in Reporting: For non-cash charitable contributions (Form 8283), for instance, the valuation is based on what a willing buyer would pay for a similar item (comparative sales/FMV), not the average price of all items sold, to ensure precise, individualized valuation.
• Transaction-Level Detail: TurboTax has adopted stricter, transaction-level reporting on forms like Form 8949 to align with the IRS's emphasis on tracking individual, accurate transactions rather than averaged data, which is considered a more accurate representation of the taxable event. 

@TinkerToyRonnie