I'm doing an estate income tax form 1041. The decedent has indicated certain beneficiaries that are charitable organizations in his will. For example 4 benes are cha. orgs and received $40,000 each, and one is an individual also receiving $40,000.
The instructions for Schedule A is "Enter amts paid for charitable purpose out of gross income". The income is: $7000 in divs (of which $3000 is qualified) and a capital loss of $3000 = Total income of $4000.
Q1: Does this mean that the charitable deduction is limited to the income? Can the rest be carried over? Q2: What would the gross income be in the above example?
Q3: Would the human beneficiary gain any benefit from the (limited) contribution? What about any (if any) carryover)?
Thank you in advance.
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