I have clients that put in $1,000,000 in ECLAT. Is it true that they can use up to 30% adjusted gross income for the deduction of the $1,000,000 per year that they placed into that charitable trust ? If so, do I deduct that on schedule A under cash contribution ?
Thanks for your answer.
Can anyone answer my question regarding the ECLAT (Charitable Lead Annuity Trust) that I sent yesterday ? Thanks
This is too complex for a quick, free answer from strangers on the internt on April 12.
First, the charitable contribution deduction is not $1,000,000. There are calculations to perform.
Is it not 30% of AGI ?
Maybe. I am saying the charitable contribution itself is probably not $1,000,000.
They contribute $1,000,000 to the CLAT. Do I enter $1,000,000 or 30% of their AGI on schedule A ?
Can anyone answer ? or send me the link for this charitable contribution.
Thanks for your help.
Once you determine the amount of the $1,000,000 that is a Charitable Contribution enter that in the software, as the appropriate type of contribution and the software will apply the limit.
You are not understanding my point.
That trust has a charitable beneficiary and other beneficiary(ies). Only part of the $1,000,000 is a charitable contribution and it involves calculations based on age, interest rates, term, etc.
Yes, $1,000,000 is a charitable contribution (present value of annuity limited by 7520reg.). Do I input that amount in the "Cash Contribution" section and name it CLAT contribution? Do I have to select "type" ?
I am using ProSeries Basic. When I enter $1,000,000 CLAT contribution, it deducts $450K, more than 30% of $750K AGI. Do I do something wrong ?
Thanks in advance for your quick response.
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