Gifts of Publicly Traded Stock
- For stock held more than one year, you can generally deduct the FMV.
- Long-term capital gain property avoids ordinary-income reduction rules.
- For gifts over $500, report on Form 8283 Section A—no appraisal needed.
- FMV is usually the average of high and low on the date of donation.
What donors need to know:
Donating stock is often better than donating cash. You avoid paying capital gains tax and get a deduction for the full fair market value. You’ll need to report the gift on Form 8283 if it’s over $500, but it’s a simple process.