This form is a sample letter in Word format covering the subject matter of the title of the form.
Donation Receipt For Stock Donation In Texas
Category:
State:
Multi-State
Control #:
US-0020LR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Deduction Limits – The IRS limits the amount you can deduct for charitable contributions of appreciated stock to 30% of your adjusted gross income (AGI) for the tax year. If your donation exceeds this limit, you can carry the excess deduction forward for up to five years.
It is very common for nonprofit organizations to receive donations of stock, especially at the end of the year as this is an effective way for donors to give to nonprofits that fits into their overall personal tax planning.
Below is sample language I have used: “Thank you for your generous contribution listed on the attached acknowledgment. The IRS requires that we only state the name of stock and number of shares. We have, however, also reflected a value and as-of date using our best attempts to follow IRS guidelines.
In some instances you may be allowed to transfer vested stock options to a charity. These may be of value to the charity if it has the funds to exercise the options and if there is a readily available market for the subsequent sale of the stock by the charity to liquidate its investment.
Once a donation of stock has been received, a thank you letter should be sent to the donor. This letter should acknowledge the gift of stock, such as the name and number of shares. It should not list the value of the stock received since the organization is not in the business of valuing stock.
Form 8283 has two sections. If you must file Form 8283, you must complete either Section A or Section B depending on the type of property donated and the amount claimed as a deduction. Members in a pass-through entity completing their own Form 8283 should complete the same section of the Form (Section A or B)
Providing Receipts As soon as the donation is in your brokerage account, send the donor a nonprofit stock acknowledgment letter that includes a tax receipt for it.
The IRS guidelines for stock donations mandate that any donation with a value greater than $250 warrants a receipt. As soon as the donation is in your brokerage account, send the donor a nonprofit stock acknowledgment letter that includes a tax receipt for it.
Deduction Limits – The IRS limits the amount you can deduct for charitable contributions of appreciated stock to 30% of your adjusted gross income (AGI) for the tax year. If your donation exceeds this limit, you can carry the excess deduction forward for up to five years.
Deducting stocks from your taxes is easy to do by filling out the right form (8283) or entering it in your tax preparation tool. You can use FreeWill to make a stock donation in 10 minutes or less.
