Charitable donations - unitrust or CRT

[bosborne]

Do I the way you have discribed even if there was no property  involved. The Crut was established with all Cash.

[sfeldman]

Regarding your question "how the charitable contribution was calculated?" - since you are donating cash, it's just the cash amount.  The charity will provide you with a gift acknowledgment.  I'm not an expert, but I believe you skip the Gift tax reporting if you are donating to a qualified charity.

[sfgigi]

@RobertB4444 

I'm in a similar situation except I donated publicly traded stock I owned since 2000. My CRuT admin gave me the present-value of remainder interest . The admin also told me although the value exceeds $5,000 I should have to fill out Section A.

I followed your steps 1-5, then

6. Publicly Traded Stock

7. Description - "XXX shares of [ticker symbol]"

Value - Present-value of remainder interest from the trust admin

Method - Present value

In the next page "Enter the purchase info for the items you gave to..", could you tell me how to enter the purchase info so that TT would not change the deductible amount?

8. Purchase Price _______ 

Date acquired _______ 

How acquired _______ 

Thank you.

[sfeldman]

Robert, not being an expert in any sense, I unfortunately can't tell you how to fill out the fields in your particular case.  Hopefully someone else will chime in here

[RobertB4444]

@sfgigi  You need to enter the purchase price for the stock that you purchased and the date back in 2000.  As for how you can just put 'purchased.'

Your stock donation is valued at the average value on the day you donated.  What you paid for the stock has no bearing on that.

[sfgigi]

Thank you, @RobertB4444 

I entered the purchase date & price and it seems to work as expected.

To double-check, for CRuT is it correct that I should enter the present value of a remainder interest (Regs. Sec. 1.664-2) based on the fair market value of the stock on the day of donation, and _not_ the average value of the stock? (i.e. Step 7, Value & Method below)

Follow steps 1-5, then

6. Publicly Traded Stock

7. Description - "XXX shares of [ticker symbol]"

Value - Present-"value of remainder interest from the trust admin"

Method - Present value

8. Purchase Price - "Price paid on 03/2000"

Date acquired - 03/2000

How acquired - Purchased

Thank you again!

[DaveF1006]

Yes, this would be the FMV or present value on the date of the donation.

@sfgigi

[berndog]

I use TTax Deluxe and the program does not allow me to check the SECURITIES  Box in Part 1 of Form 8283.

All my donations to our CRT is highly appreciated stocks.

It always checks the OTHER box.

Does anybody know why this has never been corrected???

Thanks

[sfgigi]

@berndog 

FYI:

I donated appreciated stocks to our CRuT too. AFAIK, if your stocks are publicly traded, you only need to fill out Section A of Form 8283 even if their total value exceeds $5,000.

Section A. Donated Property of $5,000 or Less and Publicly Traded Securities—List in this section only an item (or a group of similar items) for which you claimed a deduction of $5,000 or less. Also list publicly traded securities and certain other property even if the deduction is more than $5,000. See instructions.

You may want to check with your trust admin/accountant.

Good luck!

[berndog]

I donated more than $5000. in stock so I have to use Section B.

What version of TTAX do you use?

If you have another version, run a test and see if it will check Section B.  f. 📦 Securities.

Thanks

[sfgigi]

@DaveF1006 

Since the Present value of remainder interest  (ie the amount claimed as a deduction) is LESS than FMV (Average share price), it looks like this is considered a "reduced FMV contribution" and I have to mail the deduction calculation.

In Instructions for Form 8283:

"Reductions to FMV.

The amount of the reduction (if any) depends on whether the property is ordinary income property or capital gain property. Attach a statement to your tax return showing how you figured the reduction."

Does this mean once my efiling is accepted, I have to mail Form 8453 (paper) with the deduction calculation as an attachment? There is a checkbox in 8453

[ ] Form 8283, Noncash Charitable Contributions, Section A (if any statement or qualified appraisal is required), or Section B, Donated Property, and any related attachments (including any qualified appraisal or partnership Form 8283)

Thanks!

[DaveF1006]

Yes, you will need to mail in form 8453 with the deduction calculation attached as instructed. 

@sfgigi