Thursday, November 27, 2014
With the holiday season in full swing, 'tis the season to review date of delivery rules for charitable gifts, which determine the date that the gift was made and affect the tax consequences of the gift. Here are the general rules for determining date of delivery for some types of property when given as a gift:
- Securities: The day the securities are hand delivered and received by the charity, or the day the securities are mailed to the charity through the U.S. Postal Service.
- Mutual fund shares: The day that the transfer from the fund's management to the charity is complete.
- Checks: The day the check is mailed through the U.S. Postal service, and by certified mail and not post dated.
- Tangible personal property: The day the gift is received through both possession and title.
- Real estate: The day that the deed is received by the charity, or the date that the deed is recorded if required by local law to make the deed effective.
- Gifts Made by credit cards: The day the bank makes the payment to the charity.
- Donations made via a text message: The day the donor sends the text message.
See Conrad Teitell, Charitable Gifts: Date of Delivery Rules, Wealth Management, Nov. 24, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.