Discussion:Stock as a charitable gift

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Discussion Forum Index --> Tax Questions --> Stock as a charitable gift

Estock (talk\|edits) said:	23 March 2006
I am unclear about this - is it the cost basis of the stock that is deductible as a charitable contribution or the fair market value at the time of the contribution?

HPTAX (talk\|edits) said:	23 March 2006
FMV for Charitable Donation.

Bean (talk\|edits) said:	23 March 2006
Donations of stock or other property are usually valued at the fair market value of the property. For stocks and bonds with an active market, the fair market value is the average price between highest and lowest selling price on the valuation date.

Rkohmescher (talk\|edits) said:	4 September 2007
It is only the FMV if the gain in the stock is long term. If the gain is short term, it is the basis in the stock that is deductible.

TaxAssistCPA (talk\|edits) said:	5 September 2007
Rkohmescher is correct. If held long term, then you deduct FMV on the date the gift is made - unless, of course, the basis is higher than the FMV. Also, Bean is right, it is customary to use the average of the high and low for the day. Your gift value will almost always be different from the proceeds that the charitable organization gets.