charity donations of shares

Recording charitable donations of appreciated or any shares in Quicken is a manual process that could be automated. 

A way (there may be others) to do this transaction type currently is
1. manually "step up" the cost basis, if desired, by removing (specific) shares at cost, then adding shares at stepped up cost
2. sell the (specific) shares
3. withdraw a cash donation for the charity. 

If would be great if Quicken would automate the process with a Donate shares transaction type.
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  • K.O. (Win-Premier)K.O. (Win-Premier) SuperUser
    edited December 2018
    When I have done this in the past I simply remove the shares from the account on the date the charity sells them thus establishing the amount of the donation.  The Remove transaction will not change the cash balance of the account nor does it register a capital gain on the capital gains report.  Then since I typically only donate shares at the end of the year and I get a letter from the charity I don't worry about the amount of the donation not appearing on Quicken tax reports and just enter them myself on my taxes.

    I concur it would be a nice addition to have a function that allowed for donation of shares and tracked them through the tax reports.
  • Connie BrownConnie Brown Member
    edited December 2018

    When I have done this in the past I simply remove the shares from the account on the date the charity sells them thus establishing the amount of the donation.  The Remove transaction will not change the cash balance of the account nor does it register a capital gain on the capital gains report.  Then since I typically only donate shares at the end of the year and I get a letter from the charity I don't worry about the amount of the donation not appearing on Quicken tax reports and just enter them myself on my taxes.

    I concur it would be a nice addition to have a function that allowed for donation of shares and tracked them through the tax reports.

    Yes, it would be nice to see correct information on the Tax reports, capital gains and Charity donation reports. I couldn't figure out how to do all the necessary transactions until I read it here.
  • Jim_HarmanJim_Harman SuperUser
    edited January 18
    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.
    -- Jim QWin Premier subscription
  • Connie BrownConnie Brown Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Yes, the US new tax law may make a few transactions more popular. Something I hope Quicken considers.
  • K.O. (Win-Premier)K.O. (Win-Premier) SuperUser
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Also a good idea Jim.  Unfortunately with the spin off of Quicken from Intuit I have yet to see Quicken make any changes as it relates to US tax law which is unfortunate because anyone serious about personal finance (i.e. tracking more than just checking and credit card balances) needs to fully take into account tax laws in their personal financial decisions.
  • Jim_HarmanJim_Harman SuperUser
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Well to Quicken Inc's credit, I think they have updated the Tax Planner to reflect the new standard deduction and exemption rules, and apparently the latest release (R17.5) already incorporates the 2019 tax rates.

    You've got to admit it's getting better...
    -- Jim QWin Premier subscription
  • Connie BrownConnie Brown Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    These types of transactions may be smart moves for Quicken users outside the US also, I think.  As you say, effective tools for monitoring tax implications can be an important part of using personal financial software. People like to buy products and services that help them save money.  : )
  • K.O. (Win-Premier)K.O. (Win-Premier) SuperUser
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Honestly I'd prefer they spend the time on the actual transactions/reports in lieu of the planner.
  • zaconlinezaconline Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Is there a way to transfer this as a Idea for Quicken, so we can vote for this?  I am in the same situation. This is my first year for taking my RMD and I'm taking advantage of the QCD opportunity.  I now have my Vanguard accounts showing cash, when in fact that money was sent to charities and has not been in my account since they were sold.  The sell transactions are there, but Quicken shows the cash in my account. I assume this is because the brokerage does not have a way of showing that the money transferred out of my account.  Is this information that Quicken would have to establish with brokerages? Would they have to set up a mapping field or does it already exist and isn't being used.

    In the details boxes that now exist there is a box for "Financial Institution Reference" that would be a place where the brokerage could indicate that the cash was transferred out of the account. That designation could also show that the sale was tax exempt. Perhaps they could use the box for "Financial Institution notes."

    I don't see a way to use the details dialogue box to do this manually now. 

    For now, can you show it as a transfer and a charitable donation/exempt income? Does that mean you have to add a transaction in the brokerage account for each sale? 
  • Jim_HarmanJim_Harman SuperUser
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Take a look at this link

    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...

    Presumably on the Vanguard website, if not in the downloads, you can see that the money was sent from your IRA account to the charity.

    I think if you record this in Quicken as a MiscExp with a special Category of Charity-QCD or something that does NOT link to Sched. B deductions (because it reduces your taxable RMD distribution and you don't deduct it on Sched. B), everything will be tracked properly.
    -- Jim QWin Premier subscription
  • zaconlinezaconline Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    I read this earlier, but I don't see a way to include this in the transaction that was downloaded from Vanguard. Wouldn't I have to manually go in and add a transaction for each sale to include this information? (There are 25 of them for this year.) I thought the beauty of Quicken was that it automatically puts transactions in the right place to keep track of your financial information. Once I start creating transactions I am liable to miss a transaction. The transaction would be Payee, the charity or a generic entry or Misc Exp, and you are saying create a category of Charity-QCD. Then deduct the amount of each entry as part of the new transaction? I don't use the tax report, but I do use the category report with a "exempt" tag. So this would then not show up in the Income section of the report? It would show up in the Expenses section of that report, even though it isn't an actual expense?
    I would still like it if Quicken could work on this.  Perhaps allow a manual entry in the cash out column to show a balance of zero in the same transaction.
  • Connie BrownConnie Brown Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    zaconline ,  if this functionality is something you think would be useful, you can vote for it at the top of the webpage.
  • Jim_HarmanJim_Harman SuperUser
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Actually these are two separate ideas - shares donated from a taxable account and QCDs from an IRA. We should probably have a separate Idea for the QCDs.

    On the QCDs, I have never done one but generally the downloaded data does not identify the payee for any withdrawals. In a bank account, the payee is usually "Check" or "Share Draft", maybe with the check number.

    One way to handle these transactions would be to manually enter them in Quicken when you tell Vanguard to make the QCD. Within a few days you should see a Sell to generate the cash and a Withdraw when the cash leaves the account. The Withdraw should match the transaction you entered, and the cash and share balances should match.

    For reporting purposes, you can decide whether you want to include the QCD category in the report, depending on whether you want to think of the QCD as an expense.
    -- Jim QWin Premier subscription
  • Connie BrownConnie Brown Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Jim Harman, I confess I'm not an accountant nor understand all the steps necessary for these transactions in a financial system. That is why it would be awesome if Quicken provided an automated solution to these types of transactions.  So, if it is two separate ideas, it may be necessary to write up a new idea with the second, related, idea.

    Note: if anyone reading this thread likes the suggestion for this functionality added to Quicken, please vote above.
  • Joseph MooreJoseph Moore Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    Schwab and other brokers now provide checks so you can make the QCD's yourself by writing the check and mailing it directly to the charity.  If you enter the entry as a "write check" with the check number, and payee(charity)  post the category to a newly created RMD /  QCD category ( I put mine under my "Tax category" but not in Contributions) you can easily see the total YTD,  Just make sure the checks will clear to the broker before year end so that are posted as RMD's for the correct year. These payment post against the IRA account - don't use anything else to make QCD's.
  • zaconlinezaconline Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    I get that we can come up with our own manual input for this information. I am just surprised that Quicken doesn't have any categories for RMD/QCD distribution and that it is not an automated download from the brokerage like everything else. Vanguard says it is labeled as a QCD, but I couldn't get them to tell me where that information is or if it is mapped to an existing field in the Quicken file, which would show it as a debit from the account rather then cash still in the account. 

    That is a good idea to use the check # when you manually input the information.

    I'm told that the check doesn't have to clear in the year you take it; the brokerage says that you are considered to have taken the distribution when the brokerage writes the check, so I guess you can use that date when you input the transaction. With Vanguard, you don't have anyway to see when the check clears, unless you call and have them look it up.
  • Joseph MooreJoseph Moore Member
    edited December 2018

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    The key is what they include in the Form 1099R as IRA Distributions. If it clears after 2018 you might not have it reported in the Form1099 as a 2018 RMD and then face a 50% penalty or fight the IRS to get it counted.   I would rather not run that risk and do it early. 
  • edited January 16

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    We are contributing appreciated shares, not cash checks. That is the real idea. Get a tax write off for the value of the shares, by avoiding selling them in your personal account to avoid any capital gains. Let the charity do it, since they do not pay capital gains tax. 
    When I used the transfer between accounts or the remove shares selections, the actual value of the shares at transfer or removal is not sought, nor recorded, and the initial cost of those shares somehow gets recorded as a negative return (e.g -30K) altering the portfolio return unnecessarily. There is no capital gain when removing or transferring, as opposed to selling from the account.  Simply a gift of stock with a current value. that is the issue. So far I have not found a way to do this, so Quicken needs to consider supplying one, as I suspect this a common issue for many.
  • NotACPANotACPA SuperUser
    edited January 16

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    The way to record this charitable donation is described, in detail, in the very 1st post in the thread.

    Why doesn't that work for you?
    Q user since DOS version 5
    Now running Quicken Windows Subscription
    Retired "Certified Information Systems Auditor"
  • edited January 17

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    When I subsequently used the investing screen, after removing 2300 shares, I was left with an entry under the Return YTD column, when there should be no entry, since the shares were removed, not sold.  When I donated (and therefore removed) the stock on Jan7, the 2300 shares had a gain based on the then Jan 7 current price of approximately 40K.  The entry (on the Investments tab) in the Return YTD column was -43K.
    This of course throws off the tracking of my investments overall YTD.

    I did, in fact,  subsequently buy the 2300 shares back at market prices. (I wanted to maintain my position, but not the associated capital gain). So I have just two entries that day. One for removing the shares, and then one for buying them back. These reflect the reality of what happened.

    In reviewing the index post, what I did not do was add 2300 shares back at market price and then sell them at the same price which would leave two phantom transactions as a marker, but no capital gain.  I would be left with the same return YTD, from the removed shares, yes?.

    So, I went thru the motions and added the shared using the price on Jan 7, but pretending the shares were purchased back in 2011. Then I sold them.  I wound up with a 31K positive return YTD. Still not what we wanted.

    BTW, was impressed with your Superuser Status.
  • NotACPANotACPA SuperUser
    edited January 17

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    when there should be no entry
    On the Portfolio screen, click on the "Options" Gear icon in the upper right corner, and UNcheck "Show Closed Lots".


    Q user since DOS version 5
    Now running Quicken Windows Subscription
    Retired "Certified Information Systems Auditor"
  • edited January 18

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    That was a good thought, but it was already unchecked.

    I then experimented.

    Consider someone who is giving 100K to a charity:

    I rolled the date back to the day prior to donating the stock,  Jan 6, and then looked at Jan 7, the day the stock was given away, but replaced  on the open market.. 

    On Jan 6, the Market value of the stock was 98,900, Cost Basis was 59,290, and the Gain shown for the Stock's  was 39,609,  the total Return  was 72,722 (reflects all income and cap gains or losses from the stock), and the Return YTD was -1,495.

    On January 7, following removing  stock from the account, and buying it back on the open market,  the value of the new shares was 99,861, the cost basis 100,050,  the Gain -189.51, the Return (which takes into account all prior purchases and sales and dividends) 32,923 and the Return YTD -41,294.

    So the goal was accomplished. The donated the stock essentially erased any capital gain liability when  replaced it with new shares (while generating a charitable deduction of about 100K simultaneously saving the tax on the capital gain in the process).

    The total return dropped, perhaps because the stock that was donated represented 39,609 of the 72,722. (72,722-39,609=33,113, which is close.)


    But how do we rationalize the -41,294 Return YTD? Removing the shares was not supposed to result in any return YTD.  Suspiciously, the Cost basis of the donated shares was 59,290, and the difference between the value of the donation, about 100k and the 59,290 is about 41,000.  A positive number, but then the stock was donated, giving a 100k 'loss' to the account overall, except that the value of the stock was given in lieu of some cash. So at least I have some rationale for the numbers, even if I did not want to see anything in the return YTD column.  Interestingly, though the Portfolio page shows a neg return YTD, running a cap gain report did not pick up any capital gains, which is why the shares were removed rather than sold. 


    In retrospect, the program did what the program does; it was our interpretation of the results that seem lacking. Since the cap gain reports seem ok for the accountant when we get to the end of the year, it looks satisfactory.  If one were to ever sell out of the stock, it would disappear from the Portfolio page at any rate. It just looks at a glance as if one made a bad investment rather than an outright donation. I still think there is room for spiffing this up at the programming level. It would be nice, for example, when we remove shares, if there was an ability to specify the value of the donation at that point, rather than simply being stuck with the original cost of the shares in the removal process.

    Thanks for your help.






















  • edited January 18

    Good idea, Connie!

    It would also be good if Quicken would provide support for Qualified Charitable Distributions (QCDs) from an IRA, if the MiscExp as discussed here
    https://getsatisfaction.com/quickencommunity/topics/required-minimum-distribution-from-ira-to-charit...
    does not work properly for some reason.

    QCDs will be more popular with the new tax law, because they give people over 70 1/2 the opportunity to effectively get a tax deduction for charitable gifts even if they are no longer itemizing deductions.

    It was already unchecked, so I used the roll back to a date function to see exactly what was happening after removing shares.  Removing shares of course affects the over all return  calculation.  I was just surprised that it would affect the Return Year to Date calculation as well.  But removing the stock, whether sold or not, is a negative change in value for the account, so it does.  It just needs to be interpreted as  a donation, and not as a stock loss.  As expected, running the cap gains reports does not find any cap gains since there was no sale. The Return YTD value seems to be a function of the underlying cost of shares and the total amount of the donation on the day of the donation. Which requires some thought to rationalize. The program does its thing; we are the ones who need to interpret what the results mean.

    Thanks for your help.
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