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Discussion Forum Index --> Tax Questions --> Estate Charitable Contribution Passed out to Beneficiary
Anna Lock (talk|edits) said:
| 5 September 2006
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| In 2004 executor of estate made charitable contributions at her own discretion. The will did not make any provisions for the contributions. The estate was closed in 2005 and the final return was filed for 2005 with distributions made to the beneficiaries in 2005. QUESTION: Can the 2004 charitable contributions be passed out to the beneficiaries on their final K-1 in 2005?
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Dennis (talk|edits) said:
| 5 September 2006
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| No, but 2004 gets interesting. The position can be taken that the contribution represents a distribution carrying income to the beneficiaries. In that case the beneficiaries would have a deduction on their 2004 tax return.
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Sheldon (talk|edits) said:
| 6 November 2008
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| I am looking for anything more on this topic. I have a 2008 death with most of the estate designated for contributions. There won't be much income on the 1041, so I assumed that it would just zero out the K-1's to beneficiaries. But if there is a way to get a contribution deduction to the beneficiaries it could be huge. I'm not seeing additional backup of what Dennis said above for the 2 years. Yes, contributions can be claimed on the year before they are made (1041 instructions on Schedule A lay this out) by making a Secion 301.9100-2 election. But how do you go about showing that "the contribution represents a distribution carrying income to the beneficiaries." When it exceeds the income could the beneficiary end up with a net contribution deduction to the beneficiaries? I also don't see the way to prepare this on the software that I have which is ProSeries. Any thoughts are appreciated.
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Kevinh5 (talk|edits) said:
| 7 November 2008
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| Sheldon, Dennis can provide the cite, but I believe that the estate document (will) must state that the charitable contribution be made FROM INCOME (current? taxable?) in order to be deductible on the 1041. I have never read a will stating this. But I don't have that many multi-millionaire clients either. Usually just mom & pop wanting $5 or $10,000 to go to the humane society or their favorite drug rehab center or the such.
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Riley2 (talk|edits) said:
| 7 November 2008
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| Sheldon, Sec. 301.9100-2 has nothing to do with the Reg. 1.642(c)-1(b) election. Read that section for the requirements of the election. However, I am not understanding why you want to make this election. The beneficiaries are not able to use this deduction if there is no income in 2008. In other words, a charitable contribution cannot be passed out on a K-1.
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