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section 642 set aside deduction Expand / Collapse
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Anonymous
Posted 3/30/2009 4:04:25 PM




Can and estate(on fiduicary income tax return) take a irc 642 set aside dedution for amounts utlimately going to a private foundation? Is there an election that must be made with the tax return?
Post #743
Posted 3/31/2009 1:46:25 PM
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The way that I read the law, if you met all of the other requirements for a charitable set aside, you can take a deduction for income going to a private foundation. That is provided that such private foundation "qualifies" for deduction purposes.

You could not take the deduction if the private foundation is getting a specific bequest unless that bequest includes income. If the specific bequest is enhanced because it was not paid on a timely basis, the interest paid would not be something to take a charitable deduction for - based on my understanding.

Mary Kay Foss

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