Re: Charitable Donation

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In Reply to: Charitable Donation posted by Kenny on October 13, 1999 at 12:56:52:

: Mark,

: I recently made a charitable donation of 24 shares of IBM. The shares were transferred out of my account (and into the account of the charity), and obviously I received no money for this transaction. How do I account for the removal of these 24 shares in Fund Manager? If I call it a redemption, I have to enter a selling price, when in fact I received $0 for the 24 shares. If I were to enter $0 as my selling price, whis would create an erroneous loss on my capital gains report, and also artificially lower the ROI on my portfolio.

: How should I account for this share removal? Similarly, if shares were ever added to my account at no cost to me, how would I account for this? (i.e. If my parents were to transfer me stock.)

: Thanks,
: Kenny

Hi Kenny,
You could do as you suggest, and record the sell at $0/share, but this
will affect your ROI calculations. Alternatively, you could treat it as
if you sold the shares, and then gave the proceeds to the charity. This
way, you could record the sell at the value you will declare as the charitable
contribution. It sort of depends on how you want to keep track of it...

Thanks,
Mark
--
Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

Replies:

• Re: Charitable Donation Alan Shapiro 16:28:12 10/16/99 (1)
  • Re: Charitable Donation Mark 13:51:27 10/17/99 (0)