fni_support
Moderator
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posted 02-17-2005 03:56 PM
 
The Navigator Resource Center has a good write up about Gifts of Securities. If you have access, go to the NRC on the Financial Navigator Web site and look for the document Gifts of Securities. Or go directly to http://www.finnav.com/support/nrc/content/nrc04c.pdf and enter your NRC user name and password.
The NRC document is not clear how to handle the unrealized gains, if you revalue your securities periodically. Here is an alternate method that handles unrealized gains nicely:
To enter a charitable contribution:- Start the transaction in your broker cash account, just as you would for a normal security sale.
- Use $0 as the net debit.
The initial multiple distribution screen automatically shows : - Asset……………………..………..Credit
- Capital Gains……….…..….Debit
- Unrealized G/L……………..Debit
- Change the Capital Gains account to Other Income - No Tax Effect.
- Add two entries to the Multiple Distribution screen:
- Contributions - In Kind….….Debit
- Other Inc-No Tax Effect……………Credit
Both the Contributions - In Kind entry and the second Other Inc - No tax effect entry amounts are the same as the asset’s value on the first line.Note that the net of the two Other Inc - No tax effect entries is equal to what would have been the capital gain on the sale. That is your "income." The first Other Inc - No tax effect entry is the cost basis and is automatically calculated by FN. - David
FNI Support [This message has been edited by fni_support (edited 02-17-2005).]
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