Gifting stock to church

[Guest rschramm]

If I gift stock to my church can I purchase the same amount back & receive a step up in my basis, or do I have to wait 31 days (wash rules) to purchase it ? Thanks !

[Guest Del Rae]

Wash sale rules basically have to do with the disallowance of a loss from the repurchase of substantially the same stock. When we choose to gift stock to a 501©(3) charity we are usually doing it (versus giving them money out right, naturally) because we have a gain... which would seem to make wash sale rules inapplicable...

I haven't seen specific time frames attached to charitable gift giving; perhaps because if there are "strings attached", it may not be considered a complete gift. The IRS will disallow deductions for partial gifts.

Personally, I'd talk to a CPA face to face to make sure you have all your ducks in a row.

Good luck!

[Guest Harry O]

I think you are mixing and matching some tax concepts here . . .

The wash sale rules only apply where you incur a loss on the sale or other disposition of stock and within 30 days before or after the sale you repurchase substantially identical securities.

In your case, you disposed of stock to a charity. It doesn't appear as though the disposition triggered a loss. (If it did, get a new tax advisor since you should almost always sell loss stock, use the capital loss to offset gains, and give the sales proceeds to the charity. Giving loss stock "wastes" the benefits of loss deduction.)

If there was no loss on the charitable contribution, the wash sale rules do not apply. The basis of the shares you purchased within 30 days is simply the amount you paid for the stock. None of the fancy wash sale rule adjustments are necessary . . . There is no need to wait 30 days to buy new shares.