- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'm preparing a complex trust tax return. The trust reports activities from three K-1s. Two of the K-1s reported charitable contributions for the year. When entered on Lacerte, the contribution shows up on the 1041 Schedule A line 7 with description "from K-1".
This seemed fine. However, I received a critical diagnostic warning that for e-file purposes the amount needs to be moved from the K-1s to the charitable deduction input area and to setup a charitable payee reflecting this information, which in turn tells me I need to file Form 1041-A, all for contributions totaling $356.
The diagnostic does disappear if I chose to not e-file the trust return, so that's (sort of) one solution. Has anyone else run into this problem and have any suggestions or solutions.
Best Answer Click here
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
PhoebeRoberts
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That changed, so charitable contributions that come from pass-through entities are permissible 1041 deductions now. I could find you a cite if you wanted one.
For the 1041s I do, the contribution amount has never provided enough tax benefit to make it worth having to paper file the return. I just forgo the contribution by leaving it off the return entirely.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I bow to you, oh wise Phoebe.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
This was my thinking, especially since there's no benefit for taking the charitable contribution deduction, at least in my client's case. According to the instructions for Form 1041 "the trustee must file Form 1041-A for a trust that claims a charitable . . . deduction", so I'm taking this to mean that if there's no charitable contribution deduction then there's no need for the 1041-A. Thanks you the response.
