What exactly is "Qualified Appreciated Stock"?

What exactly is "Qualified Appreciated Stock"?

Forum topic posted in Forum on 8 January 2010| 3 comments
audience: | last updated: 8 January 2010
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Joined: 11/27/2000
Points: 75
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?

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Joined: 11/27/2000
Points: 75
IRS definition of Qualified Appreciated Stock
Does anyone else have any thoughts?
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Joined: 01/07/2009
Points: 30
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
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Joined: 11/27/2000
Points: 75
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?"
7520 Rates: December 26% November 2.4% October 2.2%

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