Election to deduct cost instead of fmv

[Margaret CPA in OH]

Client donated several shares of stock to various organizations. In almost every case, the basis was higher than the fmv at the time of contribution. QF says that donor can elect to donate cost instead of fmv but I don't see such on the Elections/Statements form. In ATX, do I just input the cost basis for the deduction? Thanks.

[kcjenkins]

I think the one time I did that I just typed in on Sch A, [Line 16 this yr, click on the arrow and go to the last line] XYZ Stock, x # of shares, at Cost.

[Margaret CPA in OH]

The problem with that is that she has 12 organizations to list on 8283 for stocks and other non-cash contributions. It appears as though I can override on the data entry form the amount of deduction to reflect the cost but is that a de facto election? The total difference is about $5000, not insignificant. If I use line 16 as you suggest, will there be problem not entering it on 8283?

[Mr. Pencil]

Client donated several shares of stock to various organizations. In almost every case, the basis was higher than the fmv at the time of contribution. QF says that donor can elect to donate cost instead of fmv but I don't see such on the Elections/Statements form. In ATX, do I just input the cost basis for the deduction? Thanks.

Are you talking about the election to use the 50% limit instead of 30% limit for capital gain property? That's the only way I know that calls for adjusted basis instead of FMV.

But you are describing property with a capital LOSS, not a gain. Quickfinder strategy is "Sell the asset and donate the proceeds," which is the only way to benefit from the loss (reporting on Schedule D). Since that was not done, the Schedule A deduction is limited to the lower of cost or FMV. Sorry.

[Margaret CPA in OH]

Ah, yes, thanks Mr. Pencil. I just reread that part and understand now. She should have sold and given cash but it was easier to just donate stock. She could have used the losses, too. I will suggest she review better this year before making her gifts. Thanks again!