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Common questions about fiduciary charitable deductions on Schedule A in Lacerte

SOLVED•by Intuit•11•Updated September 18, 2023

Follow these steps to enter charitable deductions in Lacerte:

  1. Go to Screen 29, Charitable Deduction.
  2. Under Charitable Payee Information, enter any applicable information in these fields:
    • Payee
    • Payee's address
    • Payee's city, state, and ZIP
    • Category (Ctrl+T)
    • Purpose of donation
    • Description of assets donated (Form 5227 only)
    • Date asset donated (Form 5227 only)
  3. Scroll down to the Amount section.
  4. Enter the percentage or amount for each applicable category of income:
    • Ordinary income
    • Short-term capital gains
    • Long-term capital gains
 

Enter percentages in .xx format (50% is entered as .50).  

Follow these steps to override the automated calculation for a standard fiduciary:

  1. Go to Screen 29, Charitable Deduction.
  2. Select Charitable Deduction Overrides from the left-side menu.
  3. Complete any applicable fields.

Follow these steps to override the automated calculated for a split-interest trust:

  1. Go to Screen 48.1, Form 5227.
  2. Scroll down to the Part VII Questionnaire section.
  3. Enter the Charitable bene. {O} field.
 

If the return is set to e-file and an override has been entered, Lacerte will generate an e-file critical diagnostic that the return will have to be filed on paper.  

Refer to this IRS resource for information on what qualifies as a charitable deduction for the Schedule A (Form 1041).

Any part of the gross income of an estate or trust that's paid (or treated as paid) during the tax year for a charitable purpose specified in section 170(c) is allowed as a deduction to the estate or trust, so long as it's paid under the terms of the will or governing instrument. The charitable organization doesn't have to be created or organized in the United States.

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