Outlined below are the various tax preparation services we provide for split interest charitable trusts (Form 5227), private operating and nonoperating foundations (Form 990-PF), and unrelated business income tax returns for tax exempt organizations (Form 990-T).
- Form 5227 for Split-Interest Trusts
- Form 990-PF for Private Foundations
- Form 990-T for Unrelated Business Taxable Income (UBTI)
Split-Interest Trust Information Return (Form 5227)
A split-interest trust is a trust arrangement where the beneficial interests of the trust are “split” between the interest during the term of the trust (Income Interest) and the interest distributed to beneficiaries when the trust term ends (Remainder Interest). These trusts are generally split between a charitable and noncharitable beneficiary.
The beneficiary holding the income interest receives a cash payment for the term of the trust, while the remainder beneficiaries receive everything left at the end of the term.
Different Types of Charitable Split-Interest Trusts
There are two primary types of split-interest charitable trusts: Charitable Lead Trust (CLT) and Charitable Remainder Trust (CRT). Each type of trust has multiple variations. Each trust must also assess whether it is a grantor or nongrantor split-interest trust.
| Forms, Schedules & Attachments | Price (in USD) & Description of Forms |
|---|---|
| Form 5227 (Split-Interest Trust Information Return), including: – Core pages 1 through 7 – Schedule A Distributions, Assets & Donor Info – Schedule D (Capital Gains and Losses) – Schedule I (Alternative Minimum Tax) – Form 8949 (Sale of Capital Assets) – Schedule K-1 Beneficiary Information – All required statements & attachments | Fee: $1,000 Additional fees apply for more complicated returns where there is a gift of noncash property (real estate, closely held business equity, interests in trusts, etc.), gifts of future interests, and gifts subject to GST. The Form 5227 requires the first 7 pages (Parts I through IX), plus additional forms & schedules depending upon the activity within the trust. |
| Form 8868 (Extension of Time to File an Exempt Organization Return) | Fee: FREE (included with base filing) Six (6) month extension to file Form 5227. |
| Schedule E Page 2 (Supplemental Income & Loss), including: – Form 8582 (Passive Activity Losses) | Fee: $50 per Schedule K-1 If the trust is invested in partnership and receives a Schedule K-1 for its allocable share of income, a Schedule E is generally required. |
| State Tax Returns | Fee: $200 per state return Depending upon the residency of the split-interest trust, the trust may have a state filing requirement. |
| Form 8621 (Passive Foreign Investment Company) | Fee: $100 per Form 8621 Disclose ownership interest in PFIC & make any appropriate elections and income inclusions. |
| Form 8858 (Foreign DRE or Foreign Branch) | Fee: $500 per Form 8858 Report U.S. person’s ownership interest in a foreign disregarded (FDE) entity or branch. |
| Form 8938 (Statement of Specified Foreign Financial Assets) | Fee: $200 Disclose foreign financial assets & foreign bank accounts. |
| FinCEN Form 114 (FBAR) | Fee: $100 Report foreign bank accounts and other foreign financial assets. |
| Additional Attachments & Appraisals | Most split-interest trusts are funded with gifts of cash or publicly traded securities. Certain gifts of property or equity in closely held businesses require substantially more disclosure & analysis on the Form 5227, and often require formal appraisals to justify the fair-market value of the asset. Our firm does not conduct appraisals. These engagements should be entered into separately with a qualified licensed third-party appraiser. |
Return of Private Foundation (Form 990-PF)
The Form 990-PF is an annual information return filed by a private foundation organized within the United States. The filing obligation applies to private “operating” foundations, private “nonoperating” foundations, and certain nonexempt charitable trusts.
| Forms, Schedules & Attachments | Price (in USD) & Description of Forms |
|---|---|
| Form 990-PF (Return of Private Organization), including: – Core pages 1 through 13 (Parts I through XVI) – Schedule B (Schedule of Contributors) – All required supporting statements & attachments | Fee: $1,000 The Form 990-PF includes the first 6 pages (Parts I through IV). Additional statements & attachments may be required depending upon your particular circumstances. Additional fees apply for more complicated returns where there is a gift of noncash property (real estate, closely held business equity, interests in trusts, etc.). |
| Form 8868 (Extension of Time to File an Exempt Organization Return) | Fee: FREE (included with base filing) Six (6) month extension request to file Form 990-PF. |
| Additional Attachments & Appraisals | Most private foundations are funded with gifts of cash or publicly traded securities. Certain gifts of property or equity in closely held businesses require substantially more disclosure on the Form 990-F, and often require formal appraisals to justify the fair-market value of the asset. Our firm does not conduct appraisals. These engagements should be entered into separately with a qualified licensed third-party appraiser. |
Exempt Organization Business Income Tax Return (Form 990-T)
The Form 990-T is an annual information return filed by a private foundation organized within the United States. The filing obligation applies to private “operating” foundations, private “nonoperating” foundations, and certain nonexempt charitable trusts.
| Forms, Schedules & Attachments | Price (in USD) & Description of Forms |
|---|---|
| Form 990-T (Exempt Organization Business Income Tax Return), including: – Core pages 1 & 2 – Schedule A (Unrelated Business Taxable Income from Unrelated Trade or Business) – Schedule D (Capital Gains & Losses) – Form 1118 (Foreign Tax Credit) – Form 4626 (Alternative Minimum Tax) – Form 8582 (Passive Activity Loss) – Form 8990 (Limitation on Business Interest) – Form 8995 (QBI Deduction) | Fee: $500 If a private foundation receives gross income of $1,000 or more from an unrelated trade or business, the foundation must file Form 990-T. A foundation is subject to regular federal corporate income taxes on its net unrelated business taxable income. |
| Form 8868 (Extension of Time to File an Exempt Organization Return) | Fee: FREE (included with base filing) Six (6) month extension request to file Form 990-T. |
