Question

Why the "I inherited my donation" question for stock donations?

Forum|Forum|2 years ago
April 6, 2024
1 reply
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My mother died in 2021. I inherited some securities from her estate. In 2023, my wife and I donated 45 shares of stock I had received to a charity.

In declaring this gift, there is a "I inherited my donation" option, but if I select that option, I then have to go into Item donation and I am still asked for the purchase price, which makes NO sense because I am already telling TurboTax that I inherited the stock on the same screen. Yes, I understand the cost basis is adjusted to the value on the day my mother died, but:

1. Why does it matter whether I bought the stock or inherited it?

2. Why is it asking me for *purchase* price when I didn't buy it? If it's wants cost basis, then say so.

Thanks,

TK

D

DianeW777

Here are the answers to your questions:

The difference between buying and inheriting is that inherited property is automatically long term holding period. This makes a difference on your deduction amount.
I tested and entered zero for the purchase price and continued through the screens. As we know, you did not purchase the stock.

When I look at the Charitable Worksheet it shows the value I entered on the date of death.