Hampton Roads Community Foundation › Forums › PGDC Discussion Forum › General Discussion
Fri
08
Jan
2010

What exactly is "Qualified Appreciated Stock"?

 »  

No votes yet
Code Sec. 170(e)(5) allows a taxpayer to take a tax deduction equal to the FMV of "Qualified Appreciated Stock," when donated to a Private Foundation. Per Ltr. Rul. 9511041 qualified appreciated stock includes publicly traded open end mutual fund shares. My question is does it include 1) open end bond mutual funds 2) closed end mutual funds (stock or bond) 3) ETFs or 4) mutual funds or ETFs that invest in a mix of bonds and stocks?
Fri
19
Feb
2010
11
points
#01 by James Hohn    

IRS definition of Qualified Appreciated Stock

The IRS Definition is found in Code Sec. 170 (e)(1)(B)(ii): (B) Qualified appreciated stock Except as provided in subparagraph (C), for purposes of this paragraph, the term "qualified appreciated stock" means any stock of a corporation - (i) for which (as of the date of the contribution) market quotations are readily available on an established securities market, and (ii) which is capital gain property (as defined in subsection (b)(1)(C)(iv)). In other words qualified appreciated stock is publicly traded stock that is capital gain property. I hopes this helps. James S. Hohn Planned Giving Resources

Wed
03
Mar
2010
0
points
#01.00 by Scott Farber    

IRS definition of Qualified Appreciated Stock

Thanks. I understand that for example IBM common stock would fit the definition. What I am trying to determine is whether 1) open end bond mutual funds 2) closed end mutual funds (stock or bond) 3) ETFs or 4) mutual funds or ETFs that invest in a mix of bonds and stocks would be classified as "Qualified Appreciated Stock?"