Deceased's final return. Is a TOD account left to a charity deductable?

Arbar — Sun, 29 Mar 2020 22:20:37 GMT

My brother died in 2019 and I am completing his final return. One of his brokerage accounts (non-retirement) was TOD to a qualified charitable organization. Can the value of the account on the date of death (or even the cost basis for that matter) be used as an itemized deduction on my brother's final individual tax return to reduce the amount of tax due?

(My brother left no Will, and no estate was created since all of his assets were TOD or POD accounts)

Re: Deceased's final return. Is a TOD account left to a charity deductable?

KarenM90 — Mon, 30 Mar 2020 00:51:13 GMT

No, based on the information you provided you will not be able to deduct it on his final return. Transactions occurring up to the date of death are reported on the decedent's final return.

Transactions occurring on or after the date of death belong on the estate tax return.

Unfortunately, because he did not have a will, you won't be able to deduct that contribution on the estate return. According to page 18 of Pub 559 (see link below) the transfer must be specified in the will:

An estate qualifies for a deduction for gross income paid or permanently set aside for qualified charitable organizations. The adjusted gross income limits for individuals don't apply. However, to be deductible by an estate, the contribution must be specifically provided for in the decedent's will. If there is no will, or if the will makes no provision for the payment to a charitable organization, then a deduction won't be allowed even though all beneficiaries may agree to the gift.

Publication 559

topic Deceased's final return. Is a TOD account left to a charity deductable? in Deductions & credits

Deceased's final return. Is a TOD account left to a charity deductable?

Re: Deceased's final return. Is a TOD account left to a charity deductable?