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    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
    New Member
    		  
    #1

    Aug 18, 2008, 01:20 PM
    Income Tax Deduction from Charitable Remainder Trust
    Hi,

    I am considering setting up a Charitable Remainder Trust through which I am told that I can get benefit of Income Tax Deduction and Estate Tax Benefit apart of satisfaction of donating my property to a good cause.

    Though I am clear with the Estate Tax Benefit, I am unable to figure out how the Income Tax Deduction is calculated. Can any one of you explain the calculation process involved in the same. Heard there is a Applicable Federal Rate(AFR) that will be used but not able to figure out how to calculate using the same.

    Many thanks for your help.

    Best Regards,
    Dilip.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 20, 2008, 07:08 AM
    Charitable Remainder Trusts are NOT something an amateur should be involved in.

    Contact a CPA who has experience with these trusts, or hire an enrolled agent (a tax specialist licensed by the IRS).
    Dilip0104's Avatar
    Dilip0104 Posts: 12, Reputation: 1
    New Member
    		  
    #3

    Aug 25, 2008, 03:59 PM
    Hi,

    I do agree that its not something an amateur must be involved in but just wanted to have a rough about about CRUT before I contact any attorney or CPA. Anyway, many thanks for your reply.

    Best Regards,
    Dilip.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Aug 26, 2008, 07:29 AM
    I am quite a bit rusty on Charitable Remainder Trusts, as I do not deal with them too often.

    That is why I referred you to a local CA or EA.
    poulosc's Avatar
    poulosc Posts: 1, Reputation: 1
    New Member
    		  
    #5

    Feb 28, 2010, 09:45 AM
    A person has a CRT Unitrust setup can receive distribution through stock dividends. The payout % per year is fixed. Is it OK to trade a muni bond ETF before and after the x-dividend date to capture the dividend. By recapturing the dividend multiple times this assures the payout is fully untilized. By doing this will also erode the principle and have negative effects on the portion that the charity will receive. Please comment.
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