Financial Tips Archive

Financial Planning Tips

Gifting Stock to Charity
(Updated: 9/13/2016)

If you gift shares of stock to a charity on an active trading day, what value will that gift have for purposes of the charitable gift tax deduction?

  1. The highest value at which the shares traded on an active market on the date of the gift
  2. The shares’ opening value on the day immediately after the date the gift was made
  3. The lowest value at which the shares traded on an active market on the date of the gift
  4. The mean between the shares’ highest and lowest quoted selling price on the date of the gift


Answer: A.

The fair market value of each share will be the average price between the highest and lowest selling price on the date of the gift. For example, if the highest price was $11 and the lowest was $9, the value of the gift would be $10. More details on determining the value of donated property are available in IRS Publication 561.



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