CHARITABLE FOUNDATION RECEIVING APPRECIATED STOCKS

[DEO]

Your urgent help is appreciated.

Situation is as follows:

 

The foundation received a series of appreciated stocks and sold it a couple of days later.

The broker statement is showing the donated stocks date of acquisition as that of the date it was originally purchased by the donor and not the date the foundation received the stocks, thus a long term capital gain.

My understanding of donated stocks is the FMV at date of the gift, and not the original basis date when donor purchased the stocks.

Am I wrong in my thoughts? How do I reconcile the date of the gift received along with the FMV with that of  the broker statement showing the original purchase date and the original basis of the donor on the 990-PF return.

Thanks in advance.

[Richcpaman]

DEO:

 

Who are you representing, the Foundation, or the donor?

 

For the donor, if you get the 1099-B at the end of the year reporting the sale of the stocks with a gain, you would report that on the Sch D without a gain or loss, and then on the Sch A report the entire donation of the appreciated shares.

 

For the Foundation, The FMV is the date of donation, and the Gain/Loss to the date of sale of the stocks.  Do not worry about the basis that the broker of the donor may have sent over.

 

Hope this helps.

 

Rich  

[michaelmars]

why would you get a 1099-b showing a sale, when it was a transfer between accounts.  Even if one of the accounts wasn't the donors it shouldn't matter.  I transfer stock to my kids and it shows as a transfer out of shares not a sale. 

[DEO]

I am preparing the Foundation 990-PF.

As Rich had commented that the basis of the stock is the FMV date of the transfer is what I have recorded in the past.

What confused me was that when the stocks were transferred to the Foundation, the broker showed the transfer at the donor's basis on the statements and not the FMV at the date of transfer.

 

Thanks

Deo

[Lion EA]

Doesn't a gift carry both the donor's cost basis and his purchase date over to the recipient?  Or, is there a special rule for appreciated stocks?  (My clients haven't been very charitable lately!)