Donar Advised Fund, Turbo Tax asking for tax basis

Forum|Forum|3 years ago
March 14, 2023
1 reply
0 views

I am using Turbo Tax Premier and I am stumped at entry for charitable contributions for a Donar Advised Fund.

If giving appreciated stock directly to the charity you do not need a tax basis. TT is asking for one on the form.

If giving appreciated stock directly to the charity you do not need the basis, so what should one enter . Do you have to give them a number for the basis.

Thanx,

Dave H.

Best answer by hbl3973

DavidEH,

There is an edge case of contributions to a private nonoperating foundation where the tax basis is needed.

But the tax basis is never needed for "qualified appreciated stock" which is defined as

" ... any stock in a corporation that is capital gain property and for which market quotations are readily available on an established securities market on the day of the contribution. But stock in a corporation doesn't count as qualified appreciated stock to the extent you and your family contributed more than 10% of the value of all the outstanding stock in the corporation."

So you are almost surely welcome to ignore that basis question.

hbl3973Answer

Employee

DavidEH,

There is an edge case of contributions to a private nonoperating foundation where the tax basis is needed.

But the tax basis is never needed for "qualified appreciated stock" which is defined as

So you are almost surely welcome to ignore that basis question.

DavidEHAuthor

Thanks for the reply. Turbo Tax kept prompting me to put in an entry for the block asking for a tax basis. I will try to see if I can bypass this block and continue on with my taxes.