Question

Form 8283: Changing method used to determine FMV

Forum|Forum|6 years ago
February 24, 2020
2 replies
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I donated some shares of a publicly traded stock to charity. TurboTax has generated form 8283 for me, but in column (i) (Method used to determine the fair market value) it says "Comparative sales".

How can I change this? I believe it should say "Treasury Regulation #20.2031-2".

TurboTax Deluxe Online

KathrynG3

It depends. The main discussion surrounding publicly traded stock donation valuations concerns comparative sales.

Please see the following references for publicly traded stock for further explanation:

IRS Publication 561 Determining the Value of Donated Property beginning on page 9.
IRS Publication 526 Charitable Contributions beginning on page 21.
- Publicly traded securities are listed at various levels of donation.
- Valuation centers around the date of the contribution and referencing market prices published daily.

R

Rachelle19

I don't understand your answer. Turbo Tax won't let me change from "Comparable Sales" If I use Edit/Override it won't let me efile. Don't feel comfortable with putting cost basis of 1. It will accept $0 is that considered the same as blank value to the irs.

I was able to change column (c) with the information that IRS wanted, that is, changed from "Stock" to mutual fund and supplied Company Name and whether publicly traded. Trubo insisted it is a stock but it is not so i changed it.

I am annoyed that i couldn't still efile my taxes by using override for column (i) the method (to Treasury Regulation #20-2031-2 and column (g) cost basis to blank ) And Turbo Tax would not let me efile state either which had nothing to do with this form.

This is clearly a software problem in Turbo Tax which leaves me no option but to file by mail.

Any advise is appreciated. Thank you.

M

mtfarley1

I have the exact problem with TT 2024. My CPA says the Valuation Method should be Average Price, but TT won't let change from Comparative Sales.

M

mchow

I have the same question. Agree with your suggested wording. Or at least use the wording "Average trading price".

Additionally, TT is populating the Cost Basis with $1. Form 8283 has these instructions for column g:

Column (g). Do not complete this column for publicly
traded securities held more than 12 months, unless you
elect to limit your deduction cost basis. See section
170(b)(1)(C)(iii). Keep records on cost or other basis.

Shouldn't that column be left blank?