Investment shares given as a gift should be entered using the DLV transaction code, if the gift is non-tax-deductible (e.g., given to a relative).  A TDG transaction should be used if the gift is given to a tax-deductible cause, such as a charity or educational institution.  The TDG code causes a negative estimated tax to be computed to indicate the tax-deductible nature of the gift.

 

The Amount field of the DLV or TDG transaction should contain the market value of the shares at the time of the gift, and the quantity should indicate the number of shares.  Both fields will contain negative values because shares and value are leaving the portfolio.

 

Receipt of Gifted Shares - See the topic Inheritances, later in this Chapter, for treatment of shares received as a gift.