541-B: Charitable Remainder and Pooled Income Trusts (2024)
California · FTB · Used for tax years 2024
California Form 541-B is a tax return for charitable remainder and pooled income trusts, with a trust-type option for charitable lead trusts. It reports income, capital gains and losses, deductions, and amounts distributed or set aside for charitable purposes.
What you'll need
Gather the information and attachments that apply to your trust:
- Trust details: Name, FEIN, trustee names, address, date created, trust type, year-end asset fair market value (FMV), and gross income.
- Income schedules: Federal Schedule C (Form 1040) for business income or loss, Schedule E (Form 1040) for rents and other listed income, Schedule F (Form 1040) for farm income or loss, and Schedule D-1 for ordinary gains or losses. The form also uses amounts from Schedule D (541).
- Deduction and balance sheet schedules: Attach a schedule for other allowable deductions and for balance sheet items marked “Attach schedule.”
- Distribution and donor details: Recipient names and identifying numbers, distribution amounts, charitable payee names and addresses, distribution dates, charitable purposes, and descriptions of distributed assets, as applicable. Schedule A also asks for donor information.
- Charitable remainder trust documents: Attach the trust instrument for an initial return, a copy of any amendment made during the year, and a signed early termination agreement if the final-year question applies and is answered “Yes.”
Common mistakes
- Skipping required sections: Part I says all trusts complete Sections A through D. Section E and Part III are for IRC Section 664 trusts only.
- Leaving a distribution mismatch unexplained: If Schedule A, Part II-A, column (h) total does not match line 61b for a CRAT or line 68 for a CRUT, check the indicated box and attach an explanation.
- Omitting an explanation when income interests expire: If you check line 73 or 74 and the return is not final, attach an explanation.
- Leaving donor information blank: In Schedule A, Part III, a “No” answer to line 6 still requires completion of column (a), the donor's name and address.
Questions people ask
What if the trust had unrelated business taxable income?
Answer “Yes” on line 26 and file a separate Form 541 to report the tax due or overpaid tax.
Who signs Form 541-B?
The form has a signature line for the trustee or an officer representing the trustee, along with the date.
Which section applies to a charitable remainder annuity trust or unitrust?
Part VI-A is completed only by an IRC Section 664 charitable remainder annuity trust (CRAT). Part VI-B is completed only by an IRC Section 664 charitable remainder unitrust (CRUT).
What donor information is needed for an initial return or additional contributions in 2024?
Answer “Yes” to Schedule A, Part III, line 6 and complete the schedule. It asks for the donor's name and address, a description of each donated asset, its FMV on the donation date, and the donation date.