linduca1216
Level 5
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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~

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BobKamman
Level 14
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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?

linduca1216
Level 5
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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.

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George4Tacks
Level 15
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For every trust you prepare, have a copy of the trust document. Read it carefully - It is your bible.

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linduca1216
Level 5
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Yes, I can see that it is!    This is just for a relative so it's new territory for me... Nonetheless, I should be aware of the perimeters if I am going to do this.

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George4Tacks
Level 15
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I never did trusts until family needed them. Come back and ask questions. It is a good niche to get into.

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linduca1216
Level 5
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thanks!

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BobKamman
Level 14
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70% of the planet doesn't follow the Bible, but if you want to use that analogy then I would apply it to the Internal Revenue Code.  The trust instrument is more like a recipe.  You can't make an omelet without knowing the ingredients.  

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linduca1216
Level 5
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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!

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Accountant-Man
Level 11
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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'm still a champion... of the world! Even without The Lounge.
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linduca1216
Level 5
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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

          

 

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sjrcpa
Level 15
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No to both questions


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View solution in original post

linduca1216
Level 5
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Thank you... Thought that would be the case, but was hoping!

 

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linduca1216
Level 5
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To everyone who provided input.   I SO appreciate it!   I really do!

Have a great Labor Day weekend!

sjrcpa
Level 15
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You, too. You're welcome.


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