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Record Charitable contribution from IRA

Bails

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?

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Accepted answers

Tom Young

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.

All comments

Tom Young

I assume the contribution is "in kind", i.e., you're actually giving the charity the stock.

q_lurker

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

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

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.

jca

https://community.quicken.com/discussion/comment/20169663#Comment_20169663

Just sell the item in the IRA into cash into the account. Then I took your suggestion and "wrote a check" to the organization with a category of "donation".

I used the check number of that the IRA provided as the check number.

If the 1099-R form you got from your IRA account doesn't reflect it properly, then THEY made a mistake. Contact them to get a corrected form.

Tom Youngs reply "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." expense does not work , as there is no account to transfer it to within Quicken

Tom Young

@jca

Seems to work:

So what am I missing here?