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Record Charitable contribution from IRA

Bails
Bails Member
edited February 9 in Investing (Windows)
I have an IRA. I made a Charitable Contribution from the IRA, but can't figure out how to record a double entry for the contribution - I have to reduce the IRA for the share value of the contribution and record a debit for the non-deductible contribution. HOW DO I DO THAT?

Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    I assume the contribution is "in kind", i.e., you're actually giving the charity the stock.
    I'd simply "sell" the stock inside the IRA at its fair market value, then "distribute" the "cash" to the charity using a MiscExp action.  If you have a "charity" Category that has been tied to Schedule A you might create a new "charity" Category that doesn't have that association.  The distribution should not be picked up as a taxable distribution.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Accepted Answer
    I assume the contribution is "in kind", i.e., you're actually giving the charity the stock.
    I'd simply "sell" the stock inside the IRA at its fair market value, then "distribute" the "cash" to the charity using a MiscExp action.  If you have a "charity" Category that has been tied to Schedule A you might create a new "charity" Category that doesn't have that association.  The distribution should not be picked up as a taxable distribution.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    If this is a Qualified Charitable Distribution (QCD), you might refer to this discussion
    https://community.quicken.com/discussion/7751849/how-to-charitable-distributions-from-my-ira
    or search google with string "QCD site:community.quicken.com".  Unfortunately you will also run into many broken links.  Be patient.
  • Bails
    Bails Member
    Tom, thanks for your prompt reply. I actually had my IRA write the check, but I think that gives me the same result; sell and donate as two transactions instead of one. There's no reason to track the basis of the asset sold, since it's not taxable. Thanks again for the response.
  • cmg_pdx
    cmg_pdx Member
    I've been doing what Bails reports doing, but I see two problems.
    1. My sell transaction goes to cash balance in the investment account, then I use WriteChk to record the donation amount and check #. I don't see a way to record a category on the sell transaction. I can split the WriteChk transaction, but there's no sensible way to do it that I can see.
    2. The transaction is not picked up by the Tax Summary report. The 1099-R shows the total distributions, but the Form 1040 requires breakout for total on line 15a and taxable amount on line 15b, with note "QCD" next to line 15b. This requires careful record keeping outside of Quicken, which doesn't make sense when I've got this great financial record-keeping software.
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