For my Virginia friends. TP gave stock valued at 11k to 501c3 organization that invest in Virginia Education Improvement Scholarships Tax Credit Program. Virginia give TP a tax credit of 6500.00 based on a 10k contribution. The way I see this is a federal deduction of 10k and a state deduction of 3500. Would you agree or not? Manny thanks as I have not run into this before.
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Don't know about Virginia, but for federal you donate 20 shares. The IRS says that the fair market value is equal to the average of the highest price and lowest price on the day of the transfer. So, if during the day of your donation, the shares trade at a high price of $51 and a low of $47, then the fair market value of twenty shares is $980. -
VA is blessed with all kinds of "specific" tax credits, and this apparently is one of them.
My recollection is the client gets the same contribution amount (as shown on the required Form 8283) on federal/state returns, and then separately gets the VA income tax credit within the VA limitations.
A quick Google search found the EISTC information below.
(I'm not sure what this has to do with a high/low daily stock price. . .)
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Through Virginia’s Education Improvement Scholarship Tax Credit (EISTC) program, you can help provide scholarships for Community School students. Donors to EISTC program-approved foundations can receive a 65% state tax credit for their donation in addition to federal or state tax deductions for their charitable gift. (Subject to rules governing deductability of charitable contributions.)Comment
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