Appraisal requirement for charitable deduction.

• Jurisdiction: United States
• Author: Berger, Harvey
• Date: 01 February 2000

Many donors transfer appreciated securities to nonprofit organizations to satisfy their charitable commitments. Donors can benefit from this if the organization is a public charity and the gain from the securities (if sold by the donor) would have been characterized as long-term capital gain; the fair market value (FMV) of the property (rather than its tax basis) would be deductible. Such treatment provides a much greater benefit than selling the property and donating the proceeds.

However...