Re: Charitable Donation

[ Q4-Q1 00 Archive ] [ Current Message Board ] [ Archives ] [ Search ]

In Reply to: Re: Charitable Donation posted by Mark on October 13, 1999 at 19:11:21:

Mark, I saw your post on this issue. I'm sure you're right about how the program
would handle this, as a "sell" transaction. Wouldn't the program, however, treat
that "sale" as subject to capital gains, if the user uses the program to calculate
tax consequences of investments? Tax-wise, a gift of stock (long-term)
to charity is quite different from a sale and gift of sales proceeds. No capital gains are
recognized.

: : 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 Mark 13:51:27 10/17/99 (0)