@merlin00 wrote:My CPA's original plan was to move money from Estate to Trust, then the Trust donates everything to charities and deducts it.......
That's a problem right there since neither an estate nor a trust can deduct charitable contributions that are NOT paid or set aside from income. Contributions that are made from corpus (principal) are NOT deductible on Form 1041 (they are on Form 706).
The Line 14H figure is strictly for the purposes of Form 8960 (calculating NIIT) and does not reduce the overall net income.
