A complex trust can claim a Year 1 deduction for a gift to charity,where the contribution was made in October of Year 2 out of gross income recognized in Year 1.

Question

Quizplus · Accepted Answer

A complex trust can claim a deduction for a charitable contribution made in the following taxable year if the contribution is paid within the first 65 days of that year and the contribution is made from gross income recognized in the prior year. This rule is known as the 65-day rule, and it allows trusts to effectively shift the deduction from one year to the next.

A Complex Trust Can Claim a Year 1 Deduction for a Gift