[[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 TaxesRoy
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