Recording stock donation to charity

ewoldde9

I am planning to make some donations of stock to charities and searched the Q on-line info for how to record this. The posting I found that came closest to my situation was

https://community.quicken.com/discussion/7421215/how-to-enter-in-securities-that-have-been-donated

In that post q_lurker posted the following steps—

1) Remove Shares
2) Add Shares - Original Acquisition date, current transaction date, current FM value
3) Sell Shares - current date, current FM value -- Cash into account, no capital gains
4) Misc Expense transaction to spend cash from investment account with category as applicable contribution, memo accordingly

This sounds good, but in my case I want to donate a portion of a lot, and need to adjust the cost-basis for the rest of the lot. So, I would add the following—

For Step 1, after removing the shares, go back to the original purchase of the lot and adjust the cost proportional to the number of shares donated. For example., if you had 200 shares and donated 100 of them, reduce the original cost by 50%.

For Steps 2 & 3, when you Buy or Add a number of shares to match the donation and then sell them with no capital gains, remember that the value for taxes is the average of the high and low for that equity for the day on which the transfer was made (see the Q price history), even if the charity did not sell it immediately.

Finally,your broker must send you a report of the transfer, and the charity must give you a receipt for the transfer (you did notify them about it before-hand, didn't you?)—save those in your file folder for taxes, come next April.

q_lurker

@ewoldde9 If you specified a specific partial lot for the remove shares, that should have left the remainder of the lot with the correct adjusted basis. I did that with a donation I did last year. Did that not happen for you?

Thanks for the reminders on the other aspects.

ewoldde9

You're right.

The transfer just went thru yesterday. I was plannng ahead of time how to record it and didin't know Quicken would make the adjjustment. What I suggested would have changed the cash balance of the account, necessitating an adjustment against a dummy checking account.

Everyone can ignlore my previous post.