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posted May 31, 2019 6:01:34 PM

Can I add money to a "Charitable Trust Fund" in 2016, amend the 2015 return and claim the deduction on that return?

I received a large check from a close out of an investment on the 31st of December 2015 and was not able to place the money into the Charitable Trust until 2016 after the taxes were submitted. I was not able to take advantage of placing the money in the bank and making arrangements before the taxes were completed, not being able to take advantage of the tax deduction in 2015 leaving me with a large tax bill.I should be able to file an amendment taking advantage of the deduction.

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3 Replies
Level 15
May 31, 2019 6:01:36 PM

I don;t think so.  Cash basis taxpayers report income and deductions when they actually happen.  I think you are the victim of poor planning or slow mails.  The only way to deduct the trust deposit from your income would be to put the money in the trust before December 31.  (One way to do this, knowing that the check was coming late, would have been to take money from your regular bank account or even a short term loan to make the trust deposit, then pay yourself back with the check.)

An april1 15 deadline for prior year charitable contributions actually passed the house in 2014 but was never signed into law that I can tell.
<a rel="nofollow" target="_blank" href="https://www.philanthropy.com/article/An-April-15-Deadline-for/152105">https://www.philanthropy.com/article/An-April-15-Deadline-for/152105</a>

Sorry, but I think you're stuck.

Level 15
May 31, 2019 6:01:38 PM

"Contributions must actually be paid in cash or other property before the close of your tax year to be deductible, whether you use the cash or accrual method."
<a rel="nofollow" target="_blank" href="https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions">https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions</a>

Level 15
May 31, 2019 6:01:40 PM

I assume that this was NOT a qualified plan rollover.

Sorry, but the fact that you waited until 2016 means it cannot be deducted in 2015.

And the sale of an investment is likely to be a capital gain, which is taxed at lower rate than ordinary income.