New Charitable Remainder Unitrust

[skyking76]

I established a new Charitable Remainder Unitrust, into which I direct deposited (no pass through) the proceeds from the sale of two fully depreciated significant business assets. 

1.  Am I correct that I enter both asset (cash) donations under charitable donations/other per review of other CRUT discussions, so as to generate the required IRS 8382 form?

2.   Should I attach a copy of the signed/completed CRUT agreement to my 2021 tax return?

3.  The assets are invested with Merrill Lynch as a TTEE account (trust account).  When I import from ML, the 1099 proceeds from that TTEE are being imported as taxable income (which it is not).  Do I just delete that account information from the 1099DIV and 1099INT and capital gains lists, or somehow otherwise indicate it is non-taxable?

4.  I will be receiving an annual taxable distribution in the amount of 7% of the value each January (starting in 2022).  How do I report that income?

[Anonymous_]

CRUTs file Form 5227.

See https://www.irs.gov/instructions/i5227#en_US_2021_publink13228ed0e107

[skyking76]

Sorry--CRUT form # on my original post was inadvertently entered--should have been 5227.

[imrtc]

When you complete the Form 5227, you will create a Form 1041 K-1 which will give you your allocated income for 2021 based on your unitrust distribution (you have to take the worst income first (interest, ordinary dividends before qualified dividends, etc., all before capital gains - and then lastly tax exempt income).  It can be very complicated.  I created our trust in October and got fund distributions at the end of the year that exceeded the  trust's interest and dividend distributions, so I will be carrying over the excess undistributed income items to next year before I can start allocating capital gains to my distributions.  I hope you contributed the business assets to the trust before you sold them since you would have gain on the sales if you sold them outside of the trust.   And make sure you get a qualified present value calculation for your charitable deduction.  I came looking for advice on how to report the contribution with TT - found a helpful post.  The instructions to Form 5227 provided in the other reply are pretty helpful, so read carefully - but still require some experience.  Get good legal and accounting advice - I am not an expert.