Donating Appreciated Stock

What I did was first remove the shares I donated from the account. Then, I added the shares back into the account, at the cost at time of the donation. Then, I sold the shares at the cost at time of the donation. Finally, I withdrew the proceeds, showing the charity as the payee, and allocated the transaction to my charitable contribution category. End result, no capital gains shows in the capital gains report, and the contribution shows up in my charitable contribution category, to the charity receiving the contribution. Not sure if this is what I was supposed to do, but it seemed to work for me. I'll figure out how to handle it in TurboTax, when I do my taxes next year, but Quicken seems to be showing the right stuff for the contribution.

Chuck

Tyler Franks wrote:

Thanks Chuck. It's not perfect, but it's better than I had. Turbo tax is going to show this as a "cash" donation however, which will have to be changed. But still ,your solution was elegant.

I do not use TT but here is my simple approach:

1. Remove donated stock without affecting the cash balance in brokerage account. Your portfolio is now correct. Add memo to trans indicating where it went.
2. Enter a Split deposit of 1. Remove donated stock without affecting the cash balance in brokerage account. Your portfolio is now correct. Add memo to trans indicating where it went. 2. Enter a Split deposit of $0.00 into my checking account: A. Negative of donation of value of stock given to me by recipient OR average of Opening and Closing price for day of transfer (IRS method). Category = Donation, Memo=where it came from. B. Positive of donation of value into a Misc. Expense account that does not have tax consequences. MemoÊsh Offset..00 into my checking account: A. Negative of donation of value of stock given to me by recipient OR average of Opening and Closing price for day of transfer (IRS method). Category = Donation, Memo=where it came from. B. Positive of donation of value into a Misc. Expense account that does not have tax consequences. MemoÊsh Offset.

A $0.00 Split deposit does not affect your cash balance but does properly record the donation amount. A $0.00 transaction must be manually reconciled.

This type of transaction is also helpful when you make a CC donation before Dec 31 that you actually pay on a CCi statement in the new year. The IRS allows such a donation to count for either year and, if desired, you can force Q. to include it in the previous year by entering a $0.00 Split deposit on Dec. 31. These transactions will not affect your cash balance or account reconciliation and you can add Memos for cross reference.

Example:

1. You make a 5 donation to the Red Cross on Dec 28, 2005 by CC.
2. You pay your CC on Jan 30, 2006 which includes the donation.
3. If you want the donation for 2006 enter it as a Donation in the CC payment details split.
4. If you want the donation for 2005: A. Enter it as a non-taxable event in your CC payment and add Memo to see Dec 31, 2005. B. On Dec. 31, 2005 enter a 1. You make a $125 donation to the Red Cross on Dec 28, 2005 by CC. 2. You pay your CC on Jan 30, 2006 which includes the donation. 3. If you want the donation for 2006 enter it as a Donation in the CC payment details split. 4. If you want the donation for 2005: A. Enter it as a non-taxable event in your CC payment and add Memo to see Dec 31, 2005. B. On Dec. 31, 2005 enter a $0.00 split deposit in your checking account. (1) Negative $125 into Donations with Memo: CC payment on Jan..00 split deposit in your checking account. (1) Negative 5 into Donations with Memo: CC payment on Jan.

Eric