Charitable donations - unitrust or CRT

[DaveF1006]

I actually worked out a scenario and got this to appear correctly in part 11 of the 8283. Now let me list the steps. I did this with you in mind. 

1. Keep in mind, the only way this will be populated on the 8283 is that you indicate that you gave away less than an entire interest  listed in Section B part 1.
2. OR if there were conditions you place on the Section B part 1 contribution.
3. If the answer is yes to both, then let's proceed.
4. Now go to the charitable contribution section of your return.
5. in choosing the category, I chose other intangible property.
6. When it ask what the method of determining value, I said present value.
7. Next screen asks purchase info, I put in created as the method of purchase.
8. Then scrolled through the screen until it asked for the name and address of the charity.
9. On the next screen, it asks if either you retained partial ownership of the donation or
10. If you attached conditions. If you say none of the above on this screen, the information will not populate in Part 11 of the 8283. So let's say yes to this particular example.
11. Next screen will ask if you retained partial ownership, say yes.
12. Next screen will ask if you contributed in a prior year.  If yes, then it will ask you the name of the charity you contributed to in prior years.
13. Next question will ask if you placed special conditions on the contribution. if so, what were they?
14. You can also edit the information in the form entitled additional info(XXX) underneath the Charitable Org (XXXX) form in your list of forms.
15. Remember the two requirements for the information to populate in Part11 of he 8283.

[berndog]

When I tried that method it stopped and said Contact a Pro to do this, would not go on from there??

The CPA that set up my Charitable Remainder Trust said that stock goes on Form 8283 Section B Part 1.

How can I get it in there with TT Deluxe???

Thank you

[DaveF1006 · Accepted solution]

Yes.  here is how you will report this.

1. Log into Turbo Tax.
2. Go to federal>deductions and credits>Charitable Donations>show more
3. Donations to Charity in 2020>stat or revisit
4. You will report it as a donation to property so you will pick items after you list the name of the charity
5. Now you will answer the questions over the next few screens
6. in choosing the category, choose other intangible property.
7. When it ask what the description, value and method of determining value, select present value. the description would be the Unitrust- Charitable Remainder Trust
8. Next screen asks purchase info, select created as the method of purchase.
9. Finish out the interview. If done correctly, the information will populate into Section B-part 1 of the 8283.

[berndog]

Hey that is the best answer yet, thank you Dave.

It put the stock donation  in the correct place on the 8283, however it  did not carry over from the work sheet that it was a Stock donation.

I changed the checked box on the work sheet to Stock and it dropped everything from the 8283 form.

Do you think it is OK to file the 8283 Form with the Other box checked instead of the Stock box?

[sfeldman]

I just went through the process of figuring out how to enter the information for a CRT/CRUT created from donating real property to the trust, using the TurboTax Home and Business edition, with a lot of help from TurboTax support.  The steps are a little different from what DaveF1006 described in my case.

I admit this approach DOES NOT fill in Part II (Partial Interests and Restricted Use Property) of Form 8283.   I honestly don't know if that is an issue or not for the IRS.  Since you're going to file a signed paper copy of the 8283 after filing electronically, you could possibly check the appropriate box on the paper form.

Note:  You MUST enter all information in Step-By-Step mode only!

1. Start with Add Another Charity on the Charities screen, and fill in the charity name, which would be the name of your trust

2. Select "Items" for What Did You Donate?

3. Choose I'll Value Them on the next screen

4. For Date of Donation, enter the date the real property was transferred to the trust

5. For Choose a Category for This Donation, select "Other intangible property"

6. For Tell us about the items you gave to <charity name>, enter a Description; enter the calculated value of your deduction (not the appraised value) for Value, and select "Present value" for Method Used to Determine Value

7. For Purchase Price, enter 0.  The reason for this is that if you enter the actual basis of the property you donated, it will typically be larger than the deduction value entered in step 6, which will confuse TurboTax because then it won't look like a Capital Gain

8. For How Acquired, select "Created"

9. For Will your donation be used in direct association with the charity's function?, select No

10. Click DONE.  This takes you back to the Review All Your Charities screen.

11. Important:  You must select CONTINUE at this point!

12. On the next screen, it will ask you Were any of your donations to a fraternal order, veteran's group, nonprofit cemetery, or other 30% charity?  You must select No (unless of course you also contributed to one of these types of organizations as well).  At this point it will pop up some helpful text, which it turns out is incorrect:  "This means we'll treat all of your donations, up to 100% of your AGI, as eligible." Do not get fooled by this bug in the software; leave your answer No.

13. Click through and enter the address of the Trust

14. On the "One more question" screen, select None of the above.   Do this even though it might seem right to select some other options.

15. You can click through and enter the information about your Qualified Appraisal

16. Skip past the questions about Group and Bargain Sale donations

This should do it.  You can go to Forms mode and double check your 8283 and Charity Limit 1 forms.  On the Charity Limit 1 form, make sure your donation appears in section D of Step 2.

[Pedalboat]

I got real far inputing a CRUT donation into Turbotax 2021, BUT, I do not see any option to show that I gave away less than a full interest.  As long as I only put the calculated donation value and the prorated tax basis, my numbers look fine.

Am I do something wrong, or is this a change with the 2021 version?

[sfeldman]

Not clear if you have donated appreciated real property, or something else.  I also wonder what "less than a full interest" means in your particular case; I'm no expert, but I seem to recall a checkbox for such a situation.

[Pedalboat]

I am donating appreciated real estate and my donation present value is 10.011%.  So I am entitled to that percent of the appraised value as a donation.  I did not see any place where you can check a box etc to describe such a partial interest.  In rereading this thread it does sound like such an option does not exist.  Worst case, since the return has to be mailed in I can just do 8283 manually.  AS long as the correct info gets to the other forms.  

[sfeldman]

As I mentioned in the list of steps I used, earlier in this thread:

- enter the calculated value of your deduction (not the appraised value) for Value, and select "Present value" for Method Used to Determine Value

Thus, you'd enter your 10.011% value here.

[Pedalboat]

Yup that’s what I am doing. I assume you put the 10.011% of the cost basis for the purchase price, or do you put 10.011% of the original purchase price?

is there anyway, other than manually, to reflect that this is a partial interest for part II?

[sfeldman]

The way I'm doing it, as I wrote in my original entry is as follows:

7. For Purchase Price, enter 0.  The reason for this is that if you enter the actual basis of the property you donated, it will typically be larger than the deduction value entered in step 6, which will confuse TurboTax because then it won't look like a Capital Gain

[bosborne]

Regarding establishing a CRUT with a 100% cash donation to a charity institution:

Are there any additional supporting documents required to be filed with form 1040 explaining the establishing of the CRUT and how the charitable contribution was calculated?

Does Federal Gift Tax Return, Form 709, need to be filed if the gift was to a Charity rather than an induviduals)?

[bosborne]

Regarding establishing a CRUT with a 100% cash donation to a charity institution:

Are there any additional supporting documents required to be filed with form 1040 explaining the establishing of the CRUT and how the charitable contribution was calculated?

Does Federal Gift Tax Return, Form 709, need to be filed if the gift was to a Charity rather than individual(s)?

[RobertB4444]

Here is how you will report this.

1. Log into Turbo Tax.
2. Go to federal>deductions and credits>Charitable Donations>show more
3. Donations to Charity in 2021>start or revisit
4. You will report it as a donation to property so you will pick items after you list the name of the charity
5. Now you will answer the questions over the next few screens
6. in choosing the category, choose other intangible property.
7. When it ask what the description, value and method of determining value, select present value. the description would be the Unitrust- Charitable Remainder Trust
8. Next screen asks purchase info, select created as the method of purchase.
9. Finish out the interview. If done correctly, the information will populate into Section B-part 1 of the 8283

See the article that the above is from here.

[Edited 01/24/22 RobertB4444 ]

[bosborne]

There was no property  involved. The Crut was established with all Cash.