Can Charitable Remainder Trusts be included in tax planning?

[kwyp]

Tax deductions can be designed and created through charity donation. Setup a charity entity or trust can not only avoid taxes but also have tax deductions.

One of them is called charitable remainder trust (CRT).  I have the below questions related to CRT

1. Whether this type trust need to file entity trust return by form 1041 each year?

2. How to calculate CRT tax deduction ?

3. What kind of tax form be issued each year when donors receive distribution as payment? Does it look like form 1099R?

4. Where to enter the data on form 1040? 

[Accountant-Man]

https://www.fidelitycharitable.org/guidance/philanthropy/charitable-remainder-trusts.html?immid=PCD&...

You need a lawyer or the charity's advisors.

[IRonMaN]

I hate to even say these numbers but you need to file a form 5227 annually. 

[TaxGuyBill]

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@IRonMaN wrote:

I hate to even say these numbers but you need to file a form 5227 annually. 

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ProSeries must have that form, right?  😈 🤣

[kwyp]

IRonMaN, how hard it is to file form 5227? How to calculate charitable deduction? Does the Charitable deduction limit to 30% of AGI? 

[IRonMaN]

The form isn't overly complicated --------------- as long as your software has the form 😩  It's been a few centuries since I got one from the start so I don't recall the calculation.

[Accountant-Man]

If you set up a CRAT or a CRUT, and the beneficiary will receive funds in the future, what is the present value of your donation? How many years are the term?

It's the charity's job to give you the numbers.

If you receive back income in the form of an annuity, then you get a 1099R and report the income.