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« Free Money Finance March Madness, Round 1, Posts 97-112 | Main | What Type of Retiree Do You Want to Be? »

March 02, 2007


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Your comment about capital gains on the unwanted mutual funds sent me on a 30-minute exploration of (courtesy of my employer) and Pub 590 looking for a way to make IRA contributions ('tis the season, you know) in non-cash form. No luck.

You could, however, make charitable contributions in the form of stock or mutual funds. If your level of charitable giving reaches such a level, it could be tax-deductable for you. Your church, for example, might be willing and able to accept shares instead of weekly cash in the plate and you kill two birds with one stone.

"You could, however, make charitable contributions in the form of stock or mutual funds."


I'm all over this!!!!!

Thanks for the suggestion.

Happy to help. Further investigation (Pub 526) reveals that the stock must be held for more than one year and there are certain cases where you must reduce the FMV of the contribution (probably not applicable in this case though). Less than one year, use the cost basis. Also note contribution limitations based on AGI.

If shares are given to a regular (non-charity) individual or entity, the basis also transfers with them. I.e., you can't gift them to your brother-in-law, who gifts cash to you in exchange. Well, you could, if he doesn't mind you sticking him with the capital gains. [See Pub 950 for gifts and Pub 551 for cost basis.]

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