Instructions For Form 5227 (Page 8 of 15) in pdf

include amounts shown on line 39. Governmental

specified in the line 41 instructions. The schedule should

obligations reported on line 45a are those that mature in

also identify the relationship of the lender to any officer,

1 year or more. Debt securities of the U.S. Government

director, trustee, or other disqualified person.

may be reported as a single total rather than itemized.

Line 55. Other liabilities. List and show the amount of

Obligations of state and municipal governments may also

each liability not reportable on lines 51 through 54. Attach

be reported as a lump-sum total. Do not combine U.S.

a separate schedule if more space is needed.

Government obligations with state and municipal

Charitable remainder unitrusts must include any

obligations on the attached schedule.

unitrust amounts applicable to prior periods that are

Line 46. Investments — land, buildings, and

unpaid but required to be paid as of the valuation date,

equipment. Enter the book value (cost or other basis

since such amounts reduce the net FMV of the trust’s

less accumulated depreciation) of all land, buildings, and

assets. However, do not include any make-up amount for

equipment held for investment purposes, such as rental

a net income charitable remainder unitrust (NIMCRUT).

properties. Attach a schedule listing these investment

Line 56. Total liabilities. Columns (a) and (b) (and

fixed assets held at the end of the year and showing, for

column (c) if a unitrust) must always have an entry, even

each item or category listed, the cost or other basis,

if it is zero.

accumulated depreciation, and book value.

Line 60. Total liabilities and net assets. Columns (a)

Line 47. Investments — other. Enter the amount of all

and (b) must always have an entry, even if it is zero.

other investment holdings not reported on line 45 or line

46. Attach a schedule describing each of these

Parts V-A and V-B. Charitable

investments held at the end of the year. Show the book

value for each and indicate whether the investment is

Remainder Trust Information

listed at cost or end-of-year market value. Do not include

program-related investments. See instructions for line 49.

Line 61b. To figure the total annual annuity amounts for

a short tax year, see Short tax years below.

Line 48. Land, buildings, and equipment. Enter the

book value (cost or other basis less accumulated

Line 65a. Enter the unitrust fixed percentage (which

depreciation) of all land, buildings, and equipment owned

may not be less than 5% or more than 50%).

by the trust and not held for investment. This includes

If there is more than one unitrust recipient, attach a

any equipment owned and used by the trust in

schedule showing the percentage of the total unitrust

conducting its charitable activities. Attach a schedule

dollar amount payable to each recipient. The sum of

listing these fixed assets held at the end of the year and

these individual shares should be 100%.

showing for each item or category listed, the cost or other

Line 65b. This line must always have an entry, even if it

basis, accumulated depreciation, and book value.

is zero.

Line 49. Other assets. List and show the book value of

Line 66a. Enter the trust’s 2007 (fiduciary) accounting

each category of assets not reportable on lines 38

income determined under the terms of the governing

through 48. Attach a separate schedule if more space is

instrument and applicable local law. Do not include

needed.

extraordinary dividends or taxable stock dividends that

One type of asset reportable on line 49 is program-

are determined under the governing instrument and

related investments made primarily to accomplish a

applicable local law to be allocable to corpus. See

charitable purpose of the trust rather than to produce

section 643(b) and Regulations sections

income.

1.664-3(a)(1)(i)(b)(3) and 1.643(b)-1 for more

Line 50. Total assets. Columns (a) and (b) (and column

information.

Line 67a. This should be the amount from line 53 of the

zero.

2006 Form 5227. If not, attach a schedule that supports

Line 51. Accounts payable and accrued expenses.

the balance in the make-up account. Figure the total

Enter the total accounts payable to suppliers and others,

deficiencies from previous years as follows.

and accrued expenses such as salaries payable, accrued

1. Aggregate the unitrust’s net asset FMV for each

payroll taxes, and interest payable.

previous year.

Line 52. Deferred revenue. Include revenue that the

2. Multiply (1) above by the unitrust’s fixed

organization has received but not yet earned as of the

percentage.

balance sheet date under its method of accounting.

3. From the result in (2), subtract the aggregate trust

income that was distributed for previous years.

Line 53. Loans from officers, directors, trustees, and

other disqualified persons. Enter the unpaid balance

Line 69. Use this amount to determine future accrued

of loans received from officers, directors, trustees, and

distribution deficiencies.

other disqualified persons. For loans outstanding at the

Short tax years. To figure the annuity amount (line 61b)

end of the year, attach a schedule that provides (for each

or the unitrust amount (line 68) for short tax years,

loan) the name and title of the lender and the information

multiply the annuity or unitrust amount by the number of

specified in the line 41 instructions.

days in the trust’s tax year, and then divide the result by

Line 54. Mortgages and other notes payable. Enter

365 (or 366 for leap years).

the amount of mortgages and other notes payable at the

beginning and end of the year. Attach a schedule

For a unitrust whose governing instrument provides for

showing, as of the end of the year, the total amount of all

an income exception, if no valuation date occurs before

mortgages payable and, for each nonmortgage note

the end of the trust’s tax year, value the trust’s assets as

payable, the name of the lender and the other information

of the last day of the trust’s tax year.

-8-

Instructions For Form 5227 Page 8

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