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Allocation

Allocate estate assets and deductions to charities

This article explains how to allocate estate assets and deductions to charitable organizations on Schedule O.
UltraTax CS calculates the allocation of estate assets and deductions to the spouse, charities, and other beneficiaries based on data entry. Specific allocations are recognized before residual calculations occur.
note
These steps assume decedent, spouse, charitable organization, and beneficiary information has been entered on the
706
 and
Names
 screens in the
General
 folder, as applicable.
  1. Choose
    File
     then
    Open Client
    , select the desired client, and select
    Open
    .
  2. Select the
    Asset
     folder, and then select the Asset tab.
  3. Enter the applicable estate asset information.
  4. Select the
    Schedule
     folder, and then select the A-L tab.
  5. Enter the applicable estate deduction information.
  6. Select the U tab, and enter any applicable conservation easement information.
  7. While in the Schedule folder, select the M&O tab. The following options are available to allocate estate assets and deductions to charitable organizations.
The following options are available to allocate estate assets and deductions to charitable organizations. After you have allocated the residual estate, open the
Information for charitable, public, and similar gifts
 statement in Section Schedule O- Charitable Gifts and Bequests.
Select the names of the charitable organizations that you want to appear on Schedule O and enter percentages in the Residual Percent column. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule O Residual Interests Worksheet to calculate the residual amount.
Describe specific allocation to charitable organizations
Open the
Information for charitable, public, and similar gifts
 statement and select the names of the charitable organizations. Use the Specific Amount (Force) column to enter charitable amounts if they are not allocated on the Asset screen. UltraTax CS lists the descriptions and amounts you enter in the statement on Schedule O.
Use percentage to allocate residual estate to charitable organizations
In the Residuary Bequest Information section enter a percentage in the
Interest in residual estate - Charitable
 field. Use the format ###.#### to enter percentages. For example, for 50% enter 50. It appears in the field as 50.0000.
Allocate residual estate to charitable organizations sufficient to bring taxable income to zero
Select
1
 from the
Calculate residual bequest - Charitable
 field in the Residuary Bequest Information section. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule O Residual Interests Worksheet to calculate the residual amount.
Select the names of the charitable organizations from the dropdown list and enter percentages in the Residual Percent column in the statement dialog for the
Information for charitable, public, and similar gifts
 field that you want to appear on Schedule O.
Allocate residual estate to charitable organizations sufficient to bring estate tax to 0 after unified credit
Select
2
 from the
Calculate residual bequest - Charitable
 field in the Residuary Bequest Information section. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule O Residual Interests Worksheet to calculate the residual amount in excess of the effective exemption amount for the year.
Select the names of the charitable organizations from the dropdown list and enter percentages in the Residual Percent column in the statement dialog for the
Information for charitable, public, and similar gifts
 field that you want to appear on Schedule O.

This article applies to:

  • Product: UltraTax CS
  • Return type: 706 Estate Tax

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