Charitable donations - unitrust or CRT

[JLaf]

How do i report contributions to a unitrust or CRT? I can't find anything in turbo tax related to these topics.

[RobertG]

Here is some guidance on that subject.

Charitable Deduction for a  charitable remainder unitrust, (CRUT)

The rules for calculating the value of a remainder interest in a CRUT are in Regs. Sec. 1.664-4. Generally, the present value of the remainder interest (i.e., the charitable deduction) in a CRUT is determined by finding the present-value factor that corresponds to the trust’s adjusted payout rate. The present-value factor for a CRUT with an income interest payable for a term of years is in Table D, Term Certain Factors, of Publication 1458. The present-value factor for a CRUT with an income interest payable for the life of the noncharitable beneficiary is in Table U(1), Single Life Factors, of Publication 1458. Most of both tables is reproduced in Regs. Sec. 1.664-4(e)(6). If the income interest is payable for the lives of two individuals, use Table U(2), Last-to-Die Factors, in Publication 1458, which is available here.

The Tax Advisor

[JLaf]

Robert, thanks for the reply, but I know the amount available for a deduction on my taxes. What I don't know is how to enter this in turbo tax. Entering a stock gift simply asks for the amount, basis and dates.... where and how do I enter the calculated charitable deduction?  thanks

[RobertG]

You just report it as a contribution of property.

See IRS publication 526: Contributions of Property

[GeeBee]

Where in TT do you input the information for a CRUT donation? I added the information I received from my CRUT accountant in the donation section but see no place to add the Present value of remainder interest which provides the actual value of my donation. How do I do this in TT?

Thanks

[DaveF1006]

You would just enter the value of your donation, period..  Did you enter this as a donated good or in the money section?  When you enter donated goods, there is a place to enter the present value of your donation. 

[GeeBee]

It was entered as a Noncash Charitable Contribution. When I looked at a previous tax return, prepared by my accountant, on the 8283 form, Part II, 2b (1) it details the amount claimed as a deduction. In TT, there is nothing in this field and when I tried to enter it, nothing happened. When does this get filled it? Also, I tried to complete the form with the Trust information and that could not be entered.  Is there a worksheet that I should be using to fill in this information?

[DaveF1006]

 The problem is, the trust may not follow under the guideline of a qualifying Charitable Organization to make charitable contributions. please review this IRS link, for further details. Also i suggest you delete your previous entries and start from scratch. Then:

1. On the left had side of your program, go to tax tools>tools>topic search
2. Type in 8283.  This will begin the process.  Answer each question carefully
3. When it asks for the Organization, type in the name of the trust.  it will also ask for an address and other details about the organization that you contributed to.
4. Be.fore you do this, review the IRS link to see if your trust falls under the guidelines of a Qualifying Charitable Organization.

1.  

[GeeBee]

Thanks for the response. I will try what you suggest. And yes this CRUT qualifies. We have donated to it before and was trying to follow what my account had done. I will try again and let you know.

Thanks

[GeeBee]

I followed your instructions but stumbled on step 1. I assume you meant tools and not tax tools. Also, there was no tools or topic search.  There was a topic list. So I don't know if I was in the wrong place.

I filled out the Charitable Organization Worksheet and the Noncash Contributions Worksheet.  On the 8283 worksheet  in Part II, 2a - I was able to put in the line number of the contribution and in 2b (1) the form won't allow me to put in the amount allowed for the deduction for this tax year. I get a blue space and nothing can be typed into  the field. Is there a chance the form is incorrect? How do I pursue that possibility? Is there a way to send the form to someone to check? 

Everything was going smoothly with this year's form until this stumbling block landed in my path.

Thanks for your assistance.

[DaveF1006]

If you are using Turbo Tax software, go to charitable contributions in step by step instead of the forms and see if you can enter the amount here for that contribution

At this point you may wish to contact a specialist that can work through that section of the return with you. The specialists can look at your return on their screen to find out exactly what is causing this issue and take corrective action if needed if you are still experiencing problems. 

[berndog]

I am having the same problem as other people posted, how do I enter my Charitable Remainder Unitrust data on form 8283??????????

TT does not allow that on one step or any other way? 

The info has to go into Part 1 Section B and TT does not allow that????

How can I get Form 8283 into TT so I can fill in manually????

Thanks

[spizz1]

Here I am in 2021 trying to report contributions to a unitrust. Can it be done in turbo tax?

[DaveF1006]

 Yes, it would be reported as a contribution of property.  See IRS publication 526: Contributions of Property. When you report it in the charitable contribution section, it will be reported as an item. According to the link, it is reported at the Fair Market Value of the trust.

[spizz1]

Dave, yes you are correct. Here's the issue: It has to be reported on form 8283 under Part II "Partial Interests and Restricted Use Property". I've called the Turbotax help line and the person did not understand the issue and tried to tell me that form 8283 isn't used with a 1040 form. That shows the people working the phones don't understand how taxes work.

My only question is, can "Turbotax Home & Business" actually allow someone to report it in Part II "Partial Interests and Restricted Use Property" on form 8283? I've read other conversations from last year here in intuit turbotax and no one has accurately explained 1) that it can be entered in Part II and 2) how to do it. This version of Turbotax clearly has limitations in what you can enter. If you think that it's possible, can you open up "Turbotax Home & Business" and enter a hypothetical unitrust example and get it to show up correctly in Part II? If it shows up in Part I then the IRS will not accept it as filed correctly.  Thanks in advance for your help.