• Trust Charitable Donations

    From bc@21:1/5 to All on Tue May 31 19:16:41 2022
    In general, a trust is allowed to make charitable donations so
    long as the trustee has been granted the power in the trust
    document.

    Further, my understanding is donations would be allowed as a
    deduction from current year income when made (or in appropriate
    cases when permanently set aside).

    What happens to "excess" donations? Are they lost, like other
    excess deductions on a trust return? Or do they carry forward
    similar to individual returns?
    --
    Bruce Davidson Cantor, CPA, JD
    Admitted in Colorado

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  • From Tempuser@21:1/5 to All on Wed Jun 1 17:57:48 2022
    On 5/31/22 4:16 PM, bc wrote:
    In general, a trust is allowed to make charitable donations so
    long as the trustee has been granted the power in the trust
    document.

    Further, my understanding is donations would be allowed as a
    deduction from current year income when made (or in appropriate
    cases when permanently set aside).

    What happens to "excess" donations? Are they lost, like other
    excess deductions on a trust return? Or do they carry forward
    similar to individual returns?
    There is no carryover provision for "excess donations" made by a complex
    trust. They are lost. There is a provision for making an election to
    treat a charitable contribution as having been made in the preceding
    year. This is explained in IRS Regulation 1.642(c)-1(b).

    --
    Alan

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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