QCD of Bonds
Does the tax code preclude giving bonds held in an IRA as a Qualified Charitable Distribution?
I see the advantage as the donor receiving a QCD for the market value of the bonds and the charity being able to derive an income stream from the bonds until receiving the par value at maturity.
Permalink Submitted by Alan - IRA critic on Wed, 2024-01-24 19:44
A QCD in kind is allowed, but the in kind distribution of any IRA investment must be transferred directly to the charity and it’s up to the IRA custodian to support such an in kind distribution and maintain a record of it. The usual cash check is more convenient for the taxpayer (QCD amount can be completely controlled whereas a bond value fluctuates daily), easier to issue for the IRA custodian, and perhaps preferred by the charity, which may have a present need for cash.