Questions about donating NUA stock to a charity

I recently distributed more than 10000 shares of BAC company stock from my 401k to a taxable account with a basis of approx. $11 per share, a current value around $24, and a closing value of approximately $23 on April 11, the date of distribution.
I want to give 1000 shares to my church.
Question 1: Is it true that appreciated stock can only be deducted to the extent that the gain on the donated stock is LT?
Question 2: With NUA stock, isn’t the difference between the cost basis, $11, and the value on the date of distribution, $23, automatically considered LT and the further appreciation, to $24, considered ST until one year from the distribution date?
Question 3: Am I correct, then, that I could give the 1000 shares but would only receive a deduction of $23000 (and the other $1000, the difference between $23 and $24, would not be deductible)?
Question 4: If so, what is the difference between $23 and $24 considered when I gift the stock?
Question 5: What do I show as the date of acquisition on the 8283? Do I just go with “various?” I could also gift some other shares of BAC to make that true.



I don’t see any replies to your questions from 7/2/2017. Did you end up donating stock to the church and if so, was the LT portion tax free, but the gain since distribution taxed at short term rate?

Add new comment

Log in or register to post comments