Aug 23, 2026 · 1 hr 10 min · 12 segments
This week we look at: - Form 1041-A Relief for Passthrough Charitable Deductions (REG-109082-25) - Vested Development Rights & Easement Valuation — Malibu Valley Land v. Commissioner - First Circuit…
Treasury's proposing to eliminate a filing requirement that never really made sense in the first place.
It was proposed on August the 17th, and it's going to deal with filing 1041As for trusts that have only passed through charitable deductions.
We have, again, like we usually have had recently, we have our illustrations here.
And basically, it's trying to get rid of a kind of ridiculous mandate that a 1041A needs to be filed by a trust, That as a charitable contribution, it is solely a contribution that flowed through to it from a pass-through entity.
And it's a little ridiculous because of the original point as to why we had the 1041A.
Now, Section 6034's predecessor, which is the one that requires this filing, days to the Revenue Act of 1950.
And Congress is worried deductions were claimed for amounts accumulated in a trust that might never actually make it to the charity.
When we can claim a deduction for a charity, for a trust, and, well, eventually the trust got restricted a bit more, but even for a trust, we can claim a deduction.
if you make the charitable contribution the year after the year you claim the deduction.
In the case of an estate, if the assets are permanently set aside for the benefit of a charity, which I will tell you, I believe it's very difficult to really do.
We did have about three cases in a row on the issue, all of which went against the taxpayer.
And then, I mean, tongue in cheek, I've said some law firm most likely just hired the IRS.
Treasury's proposing to eliminate a filing requirement that never really made sense in the first place.
It was proposed on August the 17th, and it's going to deal with filing 1041As for trusts that have only passed through charitable deductions.
We have, again, like we usually have had recently, we have our illustrations here.
And basically, it's trying to get rid of a kind of ridiculous mandate that a 1041A needs to be filed by a trust, That as a charitable contribution, it is solely a contribution that flowed through to it from a pass-through entity.
And it's a little ridiculous because of the original point as to why we had the 1041A.
Now, Section 6034's predecessor, which is the one that requires this filing, days to the Revenue Act of 1950.
And Congress is worried deductions were claimed for amounts accumulated in a trust that might never actually make it to the charity.
When we can claim a deduction for a charity, for a trust, and, well, eventually the trust got restricted a bit more, but even for a trust, we can claim a deduction.
if you make the charitable contribution the year after the year you claim the deduction.
In the case of an estate, if the assets are permanently set aside for the benefit of a charity, which I will tell you, I believe it's very difficult to really do.
We did have about three cases in a row on the issue, all of which went against the taxpayer.
And then, I mean, tongue in cheek, I've said some law firm most likely just hired the IRS.
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