Taxing CRT PaymentsTaxing CRT Payments
In November of 2003, the Internal Revenue Service proposed new regulations governing the taxation of charitable remainder unitrust and annuity trust payments. The rules apply to 2003 (some apply to earlier years), so trustees must take them into account when filing tax returns and reporting to beneficiaries. The proposed regulations1 introduce some new terms. They also provide that income can be taxed
Conrad Teitell, principal, Cummings & Lockwood, Stamford, Conn.
In November of 2003, the Internal Revenue Service proposed new regulations governing the taxation of charitable remainder unitrust and annuity trust payments. The rules apply to 2003 (some apply to earlier years), so trustees must take them into account when filing tax returns and reporting to beneficiaries.
The proposed regulations1 introduce some new terms. They also provide that income can be taxed at different rates within tier one and tier two.
It's important to have walking around knowledge of the changes. You can look up the complicated stuff when needed. But don't sweat it too much. People with green eyeshades — and those without eyeshades, but who surely will develop c...
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