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December 27, 2021
Question

How do I enter the amount claimed as a charitable deduction when it is not the same as the fmv of the donated public stock due to restrictions attached to the donation?

  • December 27, 2021
  • 1 reply
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The TT program will compute the amount claimed as a deduction

Charitable Organization Detail Worksheet, Part V line 9 (amount claimed as deduction) needs to be entered by me, not calculated by the program.  Difference is due to restrictions placed on donation.  If I override the program, it won't allow me to file electronically.  I want to file electronically!

1 reply

December 27, 2021

this is from 8283 instructions (I will admit the instructions seem contradictory because there's no discussion of exactly how to enter donation of PS with restrictions). 

What’s New Section B. Under Section B, Part I, Information for Donated Property, there is a new checkbox for clothing and household items. Partial Interests and Restricted Property has been moved from Section A, Part II to Section B, Part II. Under Section B, Part IV, Declaration of Appraiser, there is a new line requiring the appraiser's name, signature, title, and date. 

You must also file Form 8283, Section B, if you gave less than an entire interest in a property or conditions were placed on the use of the property.

 

thus you can't use the Stock Donation Section (that's for publicly traded securities - no partial interest or restrictions)on the Charitable Organization Worksheet. use the Other Item Donation Section and select Securities not Publicly traded- this is so the donation will end up in section B of the 8283.the restriction question on the worksheet is not currently working and neither is the section that requires explanation of the restrictions.

 

the instructions for section B say

Exceptions. You do not need a written appraisal if the property is: 1. A qualified vehicle (including a car, boat, or airplane) if your deduction for the vehicle is limited to the gross proceeds from its sale and you obtained a contemporaneous written acknowledgment; 2. Intellectual property (as defined earlier); 3. Publicly traded securities and certain securities considered to be publicly traded (as defined in Which Sections To Complete, earlier); or 4. Inventory or property held primarily for sale to customers in the ordinary course of your trade or business.

 

in TurboTax you must also complete the noncash contribution worksheet

Part IX the appraisal section question is not working if the value is more than $5,000 (automatically yes)

you also have to complete part XI but that's not working in that what you enter doesn't get transferred to section B part II 

 

kenlavineAuthor
December 27, 2021

Thank you Mike9241, this is quite helpful.  Can I expect TurboTax to fix those sections that are currently not working in the next couple of months?  I see the revised Form 8283 is dated December 2021 so it's not unreasonable for TurboTax to need time to fix their programs.