Perhaps I am the only person to experience this "gotcha" but thought I pass it along as a "watch out" for those still finishing their taxes
In TTax when you complete the stock gift questions, there is a dialogue box that asks you to enter the date of purchase and basis of your stock being gifted.
I originally answered "various" as the lots were all long term but of varying purchase dates. BAD IDEA. If TTax does not know it is long term (needs a date entered that is clearly LT), you only get a deduction credit for your purchase basis.
Apparently, only long term positions are eligible for receiving FMV credit to the charity. TTax "help" explains it as only LT gains received special treatment and all short-term would have been treated as ordinary income so only original cost were deductible.
Personally I never heard of this change so it was an eye opener.
Nwsteve
In TTax when you complete the stock gift questions, there is a dialogue box that asks you to enter the date of purchase and basis of your stock being gifted.
I originally answered "various" as the lots were all long term but of varying purchase dates. BAD IDEA. If TTax does not know it is long term (needs a date entered that is clearly LT), you only get a deduction credit for your purchase basis.
Apparently, only long term positions are eligible for receiving FMV credit to the charity. TTax "help" explains it as only LT gains received special treatment and all short-term would have been treated as ordinary income so only original cost were deductible.
Personally I never heard of this change so it was an eye opener.
Nwsteve