Instructions For Form 5227 - 2016 (Page 16 of 20) in pdf

Section 664 Method

SNIIC Election Method

The 28% long-term capital gain class that is Excluded Income (28% rate) is deemed distributed, then

The section 1250

long-term capital gain

The section 1250 long-term capital gain class that is Excluded Income (25% rate) is deemed distributed, then

class is deemed

distributed, and finally

All other long-term capital gain class that is NII (23.8% rate) is deemed distributed, and finally

All other long-term capital

gain class.

All other long-term capital gain class is deemed distributed.

Carryover Rules

Section 664 Method

SNIIC Election Method

1. If the trust has capital losses in excess of capital gains for any tax year:

The excess of the 43.4% rate net short-term capital loss over the net long-term capital gain for that year is a 43.4%

The excess of the net

rate short-term capital loss carryover to the next tax year.

short-term capital loss

over the net long-term

The excess of the 39.6% rate net short-term capital loss over the net long-term capital gain for that year is a

capital gain for that year

39.6% rate short-term capital loss carryover to the next tax year.

is a short-term capital

loss carryover to the next

tax year.

The excess of the 23.8% net long-term capital loss over the net short-term capital gain for that year is a 23.8%

The excess of the net

long-term capital loss carryover to the next tax year.

long-term capital loss

over the net short-term

The excess of the 20% net long-term capital loss over the net short-term capital gain for that year is a 20%

capital gain for that year

long-term capital loss carryover to the next tax year.

is a long-term capital loss

carryover to the next tax

year.

2. If the trust has capital gains in excess of capital losses for any tax year:

The excess of the 43.4% rate net short-term capital gain over the net long-term capital loss for that year is, to the

The excess of the net

extent not deemed distributed, a 43.4% rate short-term capital gain carryover to the next tax year.

short-term capital gain

over the net long-term

The excess of the 39.6% rate net short-term capital gain over the net long-term capital loss for that year is, to the

capital loss for that year

extent not deemed distributed, a 39.6% rate short-term capital gain carryover to the next tax year.

is, to the extent not

deemed distributed, a

short-term capital gain

carryover to the next tax

year.

The excess of the 31.8% rate net long-term capital gain over the net short-term capital loss for that year is, to the

extent not deemed distributed, a 31.8% rate long-term capital gain carryover to the next tax year.

The excess of the 28.8% rate net long-term capital gain over the net short-term capital loss for that year is, to the

The excess of the net

extent not deemed distributed, a 28.8% rate long-term capital gain carryover to the next tax year.

long-term capital gain

over the net short-term

The excess of the 28% rate net long-term capital gain over the net short-term capital loss for that year is, to the

capital loss for that year

extent not deemed distributed, a 28% rate long-term capital gain carryover to the next tax year.

is, to the extent not

The excess of the 25% rate net long-term capital gain over the net short-term capital loss for that year is, to the

deemed distributed, a

extent not deemed distributed, a 25% rate long-term capital gain carryover to the next tax year.

long-term capital gain

carryover to the next tax

The excess of the 23.8% rate net long-term capital gain over the net short-term capital loss for that year is, to the

year.

extent not deemed distributed, a 23.8% rate long-term capital gain carryover to the next tax year.

The excess of the 20% rate net long-term capital gain over the net short-term capital loss for that year is, to the

extent not deemed distributed, a 20% rate long-term capital gain carryover to the next tax year.

Part II-B. Current Distributions

2007-29 I.R.B. 89, and Rev. Proc. 2007-46, 2007-29 I.R.B.

102, for examples of other situations in which amounts may

(Charitable lead trusts or pooled income funds only)

be payable to a noncharitable beneficiary.

Line 5. A charitable lead trust uses line 5 to report the

A pooled income fund uses line 5 to report the amount

aggregate amount of distributions made during the year to

distributable annually among one or more noncharitable

one or more noncharitable (private) beneficiaries. For

(private) beneficiaries who hold income interests in the fund.

example, when the lead period terminates, all future

Part III. Assets and Donor Information

distributions are payable to the noncharitable beneficiary.

However, because charitable lead trusts can vary

Line 7. Pooled income funds don't complete lines 6 and 7.

considerably, the expiration of the lead period isn't the only

For trusts that answered “Yes” to question 6, complete all

context within which the trust may provide for payments to a

columns on line 7 for all donors to the trust in 2016. For

noncharitable (private) beneficiary. See the annotations to

additional donors to the trust that did not contribute to the

the sample charitable lead trusts in Rev. Proc. 2007-45,

trust in 2016, complete column (a) only.

-16-

Instructions for Form 5227

Instructions For Form 5227 - 2016 Page 16

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