Re: How to best record a stock donation? by Roy
Roy
Thu Jun 16 23:41:17 CDT 2005
Another approach to consider. Let's say you give a charity stock worth $400
that you bought for $100.
To book this in Money, you could record a hypothetical "Sell" using the cost
basis ($100) as the selling price (thus Money shows no gain/loss on the
"sale") and Transferring the "proceeds" ($100) to a dummy balance sheet
account previously set up for "wash" type transactions. Then, go to the
dummy account and do a split entry to record an expense for the full value
(tax-deductible amount) of the stock ($400), and an income amount to
Investment Income:Tax-Exempt Charitable Gift for the stock's increase in
value ($300). This leaves a net cash outgo ($100) from the dummy account
that zeroes it out.
This Sell method records the full tax-deductible amount as an expense
whereas the Remove Shares would show only the appreciation amount ($300) as
an expense, due to the fact that Removing Shares does not move the stock's
cost basis amount from the investment portfolio to an expense account. The
Sell method also does not cause any problem with specific lots.
Roy
"Bernhard Kohlhaas" <bernhard.kohlhaas@NOSPAM.sap.com> wrote in message
news:d7i83p$lgs$1@news.sap-ag.de...
> Thanks for the suggestion. That seems about the only way of doing it.
> "Remove Shares" does allow to specify specific lots, so no problems there.
>
> Bernhard
>
> Dick Watson wrote:
>> Best? Who knows?
>>
>> I'd think hard about something like a Remove Shares, an unassigned income
>> or
>> maybe some tax-neutral income category (Other Income:Charitable Stock
>> Disposition???) somewhere and then a charitable donation expense. I'm not
>> sure whether you can coerce the remove share to associate with specific
>> lots. If not, this would have downstream consequences.
>>
>> "Bernhard Kohlhaas" <bernhard.kohlhaas@NOSPAM.sap.com> wrote in message
>> news:d72ugc$nhq$1@news.sap-ag.de...
>>
>>>How do I best record a stock donation (of long-term held stock) in
>>>Money? There's no capital gains, but the value of the donation is
>>>tax-deductible as a charitable donation.
>>
>>