Allowing/Entering Charitable Deductions on a Fiduciary Return 1041

Forum|Forum|5 years ago
September 3, 2020
14 replies
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How/where do you enter charitable contribution on a 1041 using Proseries? The trust provided for the distribution upon the death of the creator. Not sure if it specifically designated that it was to come from the income, but it was far more than the income amount. Any excess(contribution greater than income) cannot be carried over, if I understand correctly. Can the beneficiaries claim the excess?

Thanks~

ProSeries Professional

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Best answer by sjrcpa

RE: 2 different scenarios

If the trust does say "out of the income," and the contrib exceeds that amount, can the K-1s reflect the beneficiaries' amounts exceeding the income?

If the trust does NOT say "out of the income" Can the contrib be reflected on the K-1s for the beneficiaries? (I'm thinking not...)

Thanks~~ (I think I'm beating a dead horse, here..)

Linda

No to both questions

BobKamman

Level 15

Not sure if it specifically designated that it was to come from the income

Then the assumption is that it came from principal, and no deduction is allowed. Have you read the trust instrument? What exactly does it say?

L

linduca1216Author

Level 6

I'll see if I can find that info. I'm thinking it just said that a contribution was to be made from the trust. I was hoping that I could assume that it came first from income then principal for the remaining amount.

George4Tacks

Level 15

For every trust you prepare, have a copy of the trust document. Read it carefully - It is your bible.

Answers are easy. Questions are hard!

L

linduca1216Author

Level 6

Sorry, but here is another one. If there has been stock distributions from the trust to beneficiaries, are the beneficiaries entitled to any of the charitable contributions amounts (based on their % of assets transferred, etc.) My guess is no. But, hey, I've got to try!

Accountant-Man

Level 13

Charitable deductions are gifts that have been made by the estate or trust to qualified charitable entities. ... If the Charitable Gift is paid out of the assets of the estate or the corpus of the trust, the deduction cannot be taken on the Form 1041.

** I am "Elevating with Intention!"