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?

Forum|Forum|1 year ago
April 1, 2025
3 replies
1 view

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.

TurboTax Online

MarilynG

Level 15

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

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vasto7

Level 4

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

Level 3

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.

slcfanAuthor

Level 2

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!

Noiedef55

Level 2

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.