Richard donates publicly traded gold company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. richard has owned the shares for 10 years. how is this contribution treated on richard's tax return?

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Kibbles

7 September, 07:43

Richard donates publicly traded gold company stock with a basis of $1,000 and a fair market value of $15,000 to the college he attended, which is considered a public charity. richard has owned the shares for 10 years. how is this contribution treated on richard's tax return?

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Koda · Answer 1

Let Contribution in tax return equal to x - y = z. Where x is the fair market value, y is the stock with a basis. Substituting these values we get $ 15,000 - $ 1,000, which makes it equal to $ 14,000. Excess of fair market oven non cash contribution can be deducted as qualified.