Reporting Charitable Bequests on Form 706 and Form 1041 (Completed)

Date: Wednesday, June 7, 2023
Instructor: Klaralee R. Charlton
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Taxpayers frequently incorporate charitable giving into their estate plans. These transfers can be drafted as dollar amounts, specific assets, or percentages of a residuary. When reporting these transfers on the Estate Tax Return, Form 706, practitioners must understand the reporting nuances—particularly for percentage transfers which require a cumbersome circular calculation to accurately claim the charitable deduction. For estates and trusts requiring a Fiduciary Income Tax Return, Form 1041, practitioners must similarly understand how to review the governing documents and evaluate the type of transfer to accurately report the charitable income tax deduction. This course will evaluate both Form 706 and Form 1041 reporting of post-death charitable transfers.

Who Should Attend
Attorneys, CPAs, Enrolled Agents

Topics Covered

  • Difference between specific bequests and residuary devises
  • Form 1041, Schedule A Charitable Deduction
  • Form 706, Schedule O Charitable Bequests
  • Case law impacting the deduction of charitable devises
  • Drafting requirements to permit charitable deductions

Learning Objectives

  • Advise clients on difference between specific bequests and residuary devises and the charitable deduction allowed for each
  • Analyze a taxpayer's ability to claim a charitable income tax deduction when preparing Form 1041
  • Calculate the proper charitable deduction when preparing Form 706 for specific bequests and residuary devises
  • Understand the importance of properly drafting an estate plan to maximize the use of the charitable deduction


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of Trust and Estate Taxation

Advance Preparation

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