Need some 990 help

[joanmcq]

Client is a 501(3)(3) that recently went over the threshold and has to file the full 990. this year they received some donated stocks and I'm not sure whether to report them at FMV or at cost. Is there any benefit to one or the other, or instance where one type of reporting is required?

Also, I'm a bit confused over Part XI Lines 5 & 7. Investment expenses are included in total expenses on line 1, why are they then also subtracted to get to ending fund balance? If investments are reported at FMV on the balance sheet, then line 5 appears to double dip. If reported at cost, it seems the balance sheet isn't balanced....

As you can see, I'm having balance sheet issues. Always seem to with this entity since I have to make a QB adjustment to liabilities, but now the investments are throwing me for a loop too.

[Abby Normal]

You record the donation at FMV and carry the investments on the balance sheet at FMV and have a net unrealized gain loss account in other income.

The net unrealized account goes on part XI line 5.

I've never used line 7 but I guess some people track it as an other expense and don't put it on Part IX.

[joanmcq]

yes, it's confusing because there is a line in Part IX for investment expenses.