Donating appreciated stock to charity

[Kea]

This is my first time doing this. New client told me they donated shares of stock to their church. The only place I've found this addressed is for the Schedule A. Stock was held long term, so deduction is FMV on date donated.

Does anything go on Sch D? (OK, Form 8949) What documents will they have? 1099B for the donated shares or just a letter from the church? I know the gain on sale will not be taxed.

Thanks

[Gail in Virginia]

Taxpayer did not sell anything if they donated stock. Church may or may not have sold the stock. The only paperwork should be the letter from the church. The donation of stock goes on form 8283.

[Guest Taxed]

I have done a few returns over the years with donation of appreciated stocks. As Gail pointed out that you need the form 8283 that will carryover the donation to Sch A. Also need the letter from the charity confirming the acceptance of the gift. one more step i ask the taxpayer is to get from the broker the statement when they transfer the stock to the brokerage account of the charity. Keep in mind this is inkind transfer. You are NOT selling the stock, while you are still the owner. If you do that all bets are off!. Ask the taxpayer to keep all this with the tax return for 7 years just incase.

In one of my cases the value was so large and the income of the taxpayer so little that there was a carrover to the following year.

[Kea]

Thanks gailtaxed & Taxed. I was hoping that was all there was.

It's one thing to know the theory, but it's also good to know how it works in the real world!

I haven't seen their documents yet, but I suspect they may have exceeded the 50% charity limit. That will be my first charitable carryforward, but I'm pretty sure that will work a lot like the capital loss carryforwards.

Thanks again!

[grandmabee]

this will be only the 30% income limit as its capital gain property

[Kea]

Thanks - I was planning to double-check that before they came in. But all I've ever had before were 50%ers -- and never had anyone get close to any of the limits.

Thanks for keeping me honest!

[joanmcq]

I just got my first one of these! Habitat for Humanity's letter detailed exactly what shares were donated and the FMV on the date of donation, plus what they sold it for (a bit less). Part A of the 8283, which surprised me a bit.