Tax Question about donating mutual fund to charity

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Topic Author
Alana888
Posts: 66
Joined: Thu Apr 10, 2014 3:50 am

Tax Question about donating mutual fund to charity

Post by Alana888 » Mon Feb 11, 2019 3:28 pm

In December of 2018 I donated all my shares of a mutual fund to a charity and planned to claimed the charitable donation in the amount of value of the fund at the time of the donation on my tax return.
In preparing my taxes, I just discovered that the cost basis of the fund I donated is about $3000 more that its value at the time of the donation.

I hadn't realized at the time that the cost basis would be higher than the closing value, so thought I would be saving in taxes by donating the fund rather than cashing it out and donating cash.
In retrospect it seems it would have been better to first sell the mutual fund and claim the loss and then donate the cash to the charity and receive the deduction.

Is there any recourse for me to claim this loss against my other capital gains at this point or is it too late for that?
Maybe just a lesson learned to check on the cost basis in relation to current value before donating shares next time, but if any of you wise people know of anything I can do at this point to receive a deduction for the loss in value of the mutual fund, I would love to hear about it

Thank you

Gill
Posts: 4958
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Tax Question about donating mutual fund to charity

Post by Gill » Mon Feb 11, 2019 3:41 pm

Very unfortunate. You're correct that you would have been better off by selling and donating the cash. Nothing to be done now. Are you sure you even benefit from a charitable deduction or are you using the standard deduction?
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Topic Author
Alana888
Posts: 66
Joined: Thu Apr 10, 2014 3:50 am

Re: Tax Question about donating mutual fund to charity

Post by Alana888 » Mon Feb 11, 2019 3:50 pm

Yes I benefit from the donation because it is still worthwhile to me to itemize deductions, but there would have been more benefit if I could also have deducted the loss. I was hoping there was some kind of after the fact recourse, but sounds like not. Thanks for the reply

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