Charitable Remainder Trust K-1 Income - where to check the box not subject to investment income tax

Forum|Forum|6 years ago
December 7, 2019
3 replies
21 views

How to prevent Charitable Remainder Trust Income on K-1 from being reported on Form 8960.

Lacerte Tax

This topic has been closed for replies.

Best answer by sjrcpa

That says the trust is exempt.

It does not say that a beneficiary is exempt on the income shown on their K-1.

sjrcpa

Level 15

Why isn't it subject to NIIT?

The more I know the more I don’t know.

O

oolaAuthor

Level 2

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

7. What estates and trusts are not subject to the Net Investment Income Tax?
The following trusts are not subject to the Net Investment Income Tax:

Trusts that are exempt from income taxes imposed by Subtitle A of the Internal Revenue Code (e.g., charitable trusts and qualified retirement plan trusts exempt from tax under section 501, and Charitable Remainder Trusts exempt from tax under section 664).

A trust or decedent’s estate in which all of the unexpired interests are devoted to one or more of the purposes described in section 170(c)(2)(B).

Trusts that are classified as “grantor trusts” under sections 671-679.

Trusts that are not classified as “trusts” for federal income tax purposes (e.g., Real Estate Investment Trusts and Common Trust Funds).

Electing Alaska Native Settlement Trusts.

Perpetual Care (Cemetery) Trusts.

sjrcpaAnswer

Level 15

That says the trust is exempt.

It does not say that a beneficiary is exempt on the income shown on their K-1.

The more I know the more I don’t know.

O

oolaAuthor

Level 2

https://www.irs.gov/pub/irs-prior/i8960--2018.pdf. Page 2.

Sign up

Login with SSO

Let's get you signed in

Login with SSO