✏️+🎥Non-Cash Charitable Contribution🟢

Responses

1. 

   Deanna Gentry 27 September 2026

   For case 7, the answer says the stock must be deducted at its basis but I read that “qualified appreciated stock” can be deducted at full FMV value even if given to a private non-operating foundation. What is correct?

   1. 

      Maroun, CPA 29 September 2026

      Hello Deanna,

      You are correct. Qualified appreciated stock may be valued at its fair market value even when contributed to a private nonoperating foundation. To qualify, the stock must be capital gain property with readily available market quotations on an established securities market. The 20%-of-AGI ceiling still applies.

      Case 7 states only that the property is “investment stock”; it does not specify whether it meets the qualified-appreciated-stock requirements. Therefore, the answer limiting the contribution to the $34,000 basis assumes the stock is not qualified appreciated stock.

      If the stock were qualified appreciated stock:
      Contribution amount: $60,000 FMV
      Current deduction: $30,000, limited to 20% of the $150,000 AGI
      Carryover: $30,000

      We will clarify the facts and explanation so the intended treatment is unambiguous.
      Thank you for bringing this exception to our attention!