Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Donation of partnership stock Date: 7/13/1999 8:13 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
[[I have charity commitments and usually I fulfill it with well appreciated stock held
for long term. But I also have some stock of a publicly traded limited
partnership, which is a tax shelter. They pay a nice distribution, which is 80%
non taxable at the time of distribution. But at the time of sale it is subject to
recapture, and at the ordinary income tax rate. So my question is this : If I
donate stock to my charity, what happens with recapture?]]

The problem is that what you originally PAID for the publicly traded partnership (PTP) may not be the same as you BASIS in the partnership. In addition, attempting to get a FMV on the partnership might pose a problem.

It also depends upon what kind of "recapture" you are talking about. If you have taken losses in prior years, you basis in the interest may be much less than you think. Remember that PTPs are generally NOT considered "qualified appreciated stock" when dealing with charitable contributions where you can get the full FMV of the shares as your charitable contribution. So you may be stuck with your BASIS in the PTS, which could be very low.

So before you go too far on this one, you'll want to make sure that you do your homework.

[[ How much grieg this
will cause to my charity ( even if it is advantageous to give them the stock, I can
not allow them to spend most of it on the accountant to fill out most of the million
forms I fill out every year for this K-1 substitute, plus more because of their tax
status).]]

Right...it may be a PITA for the charity...not necessarily because of the forms but because of the future transfer issues. The the problems with this issue really fall more on your than the charity.

TMF Taxes
Roy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement