Nilodop wrote:It would be ordinary income property.. Why?
. And the 8283 instruction says (also in relevant part)(e) Certain contributions of ordinary income and capital gain property
(1) General rule The amount of any charitable contribution of property otherwise taken into account under this section shall be reduced by the sum of—
(A) the amount of gain which would not have been long-term capital gain (determined without regard to section 1221(b)(3)) if the property contributed had been sold by the taxpayer at its fair market value (determined at the time of such contribution),
. And I see nothing in section 1221 that excludes money market mutual funds from the definition of capital asset.The deduction for a gift of ordinary income property is limited to the FMV minus the amount that would be ordinary income or short-term capital gain if the property were sold.
.Investment Objective
The Fund seeks to provide current income while maintaining liquidity and a stable share price of $1.
We might be looking for a statutory definition of "cash" now, huh? Somebody really chose the wrong word here...(G)Increased limitation for cash contributions
(i)In general
In the case of any contribution of cash to an organization described in subparagraph (A), the total amount of such contributions which may be taken into account under subsection (a) for any taxable year beginning after December 31, 2017, and before January 1, 2026, shall not exceed 60 percent of the taxpayer’s contribution base for such year.
Nilodop wrote:Fascinating! You omitted the very next sentence. " A capital loss is possible if the shares fall below $1 and are not reimbursed by the fund company." And it seems to me that "The Nest" is not an authoritative source.
Pub 526 wrote:Property is ordinary income property if you would have recognized ordinary income or short-term capital gain had you sold it at fair market value on the date it was contributed. [...]
Property is capital gain property if you would have recognized long-term capital gain had you sold it at fair market value on the date of the contribution. Capital gain property includes capital assets held more than 1 year.
Capital assets. Capital assets include most items of property you own and use for personal purposes or investment. Examples of capital assets are stocks, bonds, jewelry, coin or stamp collections, and cars or furniture used for personal purposes.
If you make cash contributions during the year to an organization described earlier under First category of qualified organizations (50% limit organizations), your deduction for the cash contributions is 60% of your adjusted gross income
. So would a court toss that as absurd and re-phrase it the way Spell Czech would have written it? I know with a high degree of certitude that Spell would have writ(iv) For purposes of this paragraph, the term “capital gain property” means, with respect to any contribution, any capital asset the sale of which at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain.
.(iv) For purposes of this paragraph, the term “capital gain property” means, with respect to any contribution, any capital asset the sale of which at a gain and at its fair market value at the time of the contribution would have resulted in gain which would have been long-term capital gain.
Vanguard Prime, Federal, and Treasury Money Market Funds: You could lose money by investing in the Funds. Although the Funds seek to preserve the value of your investment at $1.00 per share, they cannot guarantee they will do so. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
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