Can I use the full calculated charitable income tax deduction in the year of contribution?
A. Maybe. The income deduction you receive for your gift to the CRT will be limited in the same way any other charitable contribution is limited pursuant to IRC Section 170, based upon the adjusted gross income of the taxpayer, the type of asset given and the type of charitable remainderman named in the trust instrument. If the full deduction cannot be utilized in the year of contribution, the unused portion may be carried forward up to an additional five years.
Related Questions
- What is the effect on the charitable contribution deduction if a taxpayer made a disclaimer, or a partial disclaimer, of his or her required final annuity distribution from a CRT?
- Does a taxpayer who participates in the settlement initiative lose the charitable contribution deduction received for funding a CRT?
- Can I use the full calculated charitable income tax deduction in the year of contribution?
