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Financial Planning / Tax Strategies


Subject:  Donation of partnership stock Date:  7/12/1999  2:17 AM
Author:  UnwiseNotFool Number:  17175 of 130410

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? 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).
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