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schd-pg-enabled nd.gov tax indincome forms 2008

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This document provides instructions for claiming North Dakota's planned gift tax credit. It explains the types of qualified planned gifts that are eligible for the credit, such as charitable remainder trusts and charitable gift annuities. It outlines the calculation of the credit amount and how to carry unused credits forward to future tax years. It also describes how to make an adjustment to North Dakota taxable income for the charitable contribution amount used to calculate the credit.

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Schedule North Dakota Office of State Tax Commissioner PG 2008 Planned gift tax credit Attach to Form ND-1 or ND-2 Name(s) shown on return Your social security number North Dakota qualified nonprofit organization Name of qualified nonprofit organization Name of administering entity, if different from qualified nonprofit organization Address Address Zip City State State Zip City Qualified planned gift 1. Planned gift was given to: Qualified nonprofit organization Qualified endowment fund. Enter name of fund 2. Identify the method used to make the planned gift. See the instructions for the eligibility criteria. (Fill in the applicable circle) Charitable remainder unitrust Charitable gift annuity Deferred charitable gift annuity Charitable remainder annuity trust Charitable lead unitrust Charitable life estate Pooled income fund trust Charitable lead annuity trust Paid-up life insurance policy 3. Date on which qualified planned gift was completed 3 MM DD YYYY Calculation of credit If you are only carrying forward an unused credit from 2006 or 2007, skip lines 4 through 7, and go to line 8. 4. Charitable contribution portion of planned gifts completed in 2008 tax year 4 5. Maximum contribution eligible for credit: If married filing jointly, enter $50,000; otherwise, enter $25,000 5 6. Enter smaller of line 4 or line 5 6 7. 2008 credit. Multiply line 6 by 40% (.40). 7 8. Credit carryover from 2006. Enter amount from 2007 Schedule PG, line 13 8 9. Credit carryover from 2007. Enter amount from 2007 Schedule PG, line 16 9 10. Total available credit. Add lines 7, 8, and 9 10 11. Amount of line 10 used to reduce tax in 2008. See instructions. Enter this amount on Schedule ND-1TC, line 5, 11 OR Form ND-2, Tax Computation Schedule, line 4 Credit carryover to 2009 tax year 12 12. Subtract line 8 from line 11. If result is less than zero, enter -0- 13 13. 2007 credit carryover to 2009 tax year. Subtract line 12 from line 9. If result is less than zero, enter -0- 14 14. Add lines 8 and 9 15 15. Subtract line 14 from line 11. If result is less than zero, enter -0- 16 16. 2008 credit carryover to 2009 tax year. Subtract line 15 from line 7 Adjustment to North Dakota taxable income If you are only carrying forward an unused credit from 2006 or 2007, do not complete lines 17 through 21. 17. Did you use Form 1040 and itemize deductions on Schedule A? No. Stop here; no adjustment is required based on your 2008 contribution. Yes. Enter the amount from Schedule A (Form 1040), line 29 17 18. Enter the standard deduction that you would have been allowed on your 2008 Form 1040, line 40, had you 18 not itemized deductions on Schedule A (Form 1040) - see instructions 19. Subtract line 18 from line 17. If result is less than zero, enter -0- 19 20. Enter the amount from line 6 20 21. Adjustment amount. Enter smaller of line 19 or line 20. Enter this amount on Form ND-1, line 4, OR Form ND-2, 21 Schedule 2, line 4. If using Form ND-2, Schedule 3, see instructions If there's an amount on line 4, attach a receipt or statement from the qualified nonprofit organization acknowledging its I.R.C. § 501(c)(1) status, the planned gift method used, the date and amount of the planned gift, and, if applicable, the name of the endowment fund. www.nd.gov/tax
North Dakota Office of State Tax Commissioner 2008 Schedule PG instructions General instructions expectancy of the annuitant or of the charitable contribution that was made using joint life expectancies of the annuitants, An individual is allowed an income tax one of the following gifting methods: credit for making a qualified planned gift to a if more than one annuitant, using the Charitable remainder unitrust—To qualified nonprofit organization or a qualified actuarial tables applicable to determining qualify, both of the following must apply: endowment fund. See the instructions to the federal charitable income tax 1. The trust must be a trust defined under line 1 for what is a qualified planned gift. deduction on the date of the contribution. I.R.C. § 664(d)(2). 3. The annuity contract must contain a The credit must be claimed first in the tax 2. The trust agreement must contain a provision that states the annuitant’s year in which the planned gift is made. The provision stating that the trust may not unused portion of a credit for a planned gift interest in the gift annuity may not terminate and that the beneficiary’s made in the 2008 tax year may be carried be assigned to the qualified nonprofit interest in the trust may not be given to forward for up to three tax years. organization or qualified endowment the qualified nonprofit organization or qualified endowment fund before the fund before the earlier of (a) the date Adjustment to taxable income—North earlier of (a) the date of death of the of death of the annuitant or (b) the date Dakota taxable income must be increased beneficiary or (b) the date that is five that is five years after the date of the by the amount of the charitable contribution years after the date of the contribution. upon which the credit is computed, but only contribution. to the extent that the contribution reduced Charitable remainder annuity trust—To Charitable life estate agreement—To federal taxable income. See the applicable qualify, both of the following must be met: qualify, the agreement must satisfy the line on Form ND-1 or Form ND-2. 1. The trust must be a trust defined under requirements of I.R.C. § 170(f)(3)(B). Qualified nonprofit organization. A I.R.C. § 664(d)(1). Paid-up life insurance policy—To qualify, qualified nonprofit organization means an 2. The trust agreement must contain a organization that: provision stating that the trust may not both of the following must be met: terminate and that the beneficiary’s 1. Is incorporated in North Dakota, or has 1. The policy must be a paid-up policy, i.e., interest in the trust may not be given to an established location in North Dakota, all premiums for the policy have been the qualified nonprofit organization or 2. Is tax-exempt under I.R.C. § 501(c), and paid, with no more premiums due in the qualified endowment fund before the 3. Is a charitable donee organization as future. earlier of (a) the date of death of the defined under I.R.C. § 170. 2. The gift of the policy qualifies as a beneficiary or (b) the date that is five charitable contribution under I.R.C. years after the date of the contribution. Qualified endowment fund. A qualified § 170. endowment fund means a permanent, Pooled income fund—To qualify, the irrevocable fund that meets all of the trust must be a trust defined under I.R.C. Line 4 following: § 642(c)(5). Enter the portion of all qualified planned 1. It is held by a qualified nonprofit Charitable gift annuity—To qualify, both gifts completed in 2008 for which a organization (as defined above). of the following must be met: charitable contribution deduction is allowed 2. It is comprised of cash, securities, mutual in 2008 for federal income tax purposes. 1. The annuity must be a qualified funds, or other investment assets. charitable gift annuity as defined for 3. It is established for a specific religious, Line 11 federal income tax purposes. educational, or other charitable purpose. 2. The annuity contract must contain a Enter on this line only that portion of the 4. It may expend only the income generated provision that states the annuitant’s tax credit on line 10 that you actually use to by, or the increase in value of, the assets interest in the gift annuity may not reduce your 2008 tax liability. For example, contributed to it. be assigned to the qualified nonprofit if the allowable tax credit on line 10 is organization or qualified endowment $1,000, but you only need $400 to reduce Specific line instructions fund before the earlier of (a) the date your tax liability to zero, enter $400 on of death of the annuitant or (b) the date line 11. Name and address that is five years after the date of the Lines 17 through 21 contribution. Enter the name of the qualified nonprofit organization to which the planned gift was If you entered an amount on line 4, you Charitable lead unitrust—To qualify, the made. If the planned gift was made to a must complete lines 17 through 21. If you arrangement must satisfy the requirements of qualified endowment fund, enter the name of are only carrying forward an unused credit I.R.C. § 170(f)(2)(B). the qualified nonprofit organization that holds from 2006 or 2007, do not complete lines 17 the endowment. If a bank, trust company, Charitable lead annuity trust— To through 21. or other entity administers the planned gift qualify, the arrangement must satisfy the Line 18 assets or qualified endowment fund on behalf requirements of I.R.C. § 170(f)(2)(B). of the qualified nonprofit organization, enter To determine the proper amount to enter Deferred charitable gift annuity—To the name and address of that entity in the on this line, see the instructions to the 2008 qualify, all of the following must be met: boxes provided on the schedule. Form 1040, line 40. 1. The annuity must be a qualified charitable gift annuity as defined for Line 21 Line 2 federal income tax purposes. If you are a part-year resident or a full-year Fill in the circle next to the type of qualified 2. The annuity contract must contain a nonresident, and you are using Form ND-2, planned gift on which the tax credit is provision that requires the payment see the instructions to Schedule 3, Part 1, based. To qualify for the credit, the qualified of the annuity to begin within the life line 12, to determine the adjustment amount. planned gift must consist of an irrevocable

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schd-pg-enabled nd.gov tax indincome forms 2008

  • 1. Schedule North Dakota Office of State Tax Commissioner PG 2008 Planned gift tax credit Attach to Form ND-1 or ND-2 Name(s) shown on return Your social security number North Dakota qualified nonprofit organization Name of qualified nonprofit organization Name of administering entity, if different from qualified nonprofit organization Address Address Zip City State State Zip City Qualified planned gift 1. Planned gift was given to: Qualified nonprofit organization Qualified endowment fund. Enter name of fund 2. Identify the method used to make the planned gift. See the instructions for the eligibility criteria. (Fill in the applicable circle) Charitable remainder unitrust Charitable gift annuity Deferred charitable gift annuity Charitable remainder annuity trust Charitable lead unitrust Charitable life estate Pooled income fund trust Charitable lead annuity trust Paid-up life insurance policy 3. Date on which qualified planned gift was completed 3 MM DD YYYY Calculation of credit If you are only carrying forward an unused credit from 2006 or 2007, skip lines 4 through 7, and go to line 8. 4. Charitable contribution portion of planned gifts completed in 2008 tax year 4 5. Maximum contribution eligible for credit: If married filing jointly, enter $50,000; otherwise, enter $25,000 5 6. Enter smaller of line 4 or line 5 6 7. 2008 credit. Multiply line 6 by 40% (.40). 7 8. Credit carryover from 2006. Enter amount from 2007 Schedule PG, line 13 8 9. Credit carryover from 2007. Enter amount from 2007 Schedule PG, line 16 9 10. Total available credit. Add lines 7, 8, and 9 10 11. Amount of line 10 used to reduce tax in 2008. See instructions. Enter this amount on Schedule ND-1TC, line 5, 11 OR Form ND-2, Tax Computation Schedule, line 4 Credit carryover to 2009 tax year 12 12. Subtract line 8 from line 11. If result is less than zero, enter -0- 13 13. 2007 credit carryover to 2009 tax year. Subtract line 12 from line 9. If result is less than zero, enter -0- 14 14. Add lines 8 and 9 15 15. Subtract line 14 from line 11. If result is less than zero, enter -0- 16 16. 2008 credit carryover to 2009 tax year. Subtract line 15 from line 7 Adjustment to North Dakota taxable income If you are only carrying forward an unused credit from 2006 or 2007, do not complete lines 17 through 21. 17. Did you use Form 1040 and itemize deductions on Schedule A? No. Stop here; no adjustment is required based on your 2008 contribution. Yes. Enter the amount from Schedule A (Form 1040), line 29 17 18. Enter the standard deduction that you would have been allowed on your 2008 Form 1040, line 40, had you 18 not itemized deductions on Schedule A (Form 1040) - see instructions 19. Subtract line 18 from line 17. If result is less than zero, enter -0- 19 20. Enter the amount from line 6 20 21. Adjustment amount. Enter smaller of line 19 or line 20. Enter this amount on Form ND-1, line 4, OR Form ND-2, 21 Schedule 2, line 4. If using Form ND-2, Schedule 3, see instructions If there's an amount on line 4, attach a receipt or statement from the qualified nonprofit organization acknowledging its I.R.C. § 501(c)(1) status, the planned gift method used, the date and amount of the planned gift, and, if applicable, the name of the endowment fund. www.nd.gov/tax
  • 2. North Dakota Office of State Tax Commissioner 2008 Schedule PG instructions General instructions expectancy of the annuitant or of the charitable contribution that was made using joint life expectancies of the annuitants, An individual is allowed an income tax one of the following gifting methods: credit for making a qualified planned gift to a if more than one annuitant, using the Charitable remainder unitrust—To qualified nonprofit organization or a qualified actuarial tables applicable to determining qualify, both of the following must apply: endowment fund. See the instructions to the federal charitable income tax 1. The trust must be a trust defined under line 1 for what is a qualified planned gift. deduction on the date of the contribution. I.R.C. § 664(d)(2). 3. The annuity contract must contain a The credit must be claimed first in the tax 2. The trust agreement must contain a provision that states the annuitant’s year in which the planned gift is made. The provision stating that the trust may not unused portion of a credit for a planned gift interest in the gift annuity may not terminate and that the beneficiary’s made in the 2008 tax year may be carried be assigned to the qualified nonprofit interest in the trust may not be given to forward for up to three tax years. organization or qualified endowment the qualified nonprofit organization or qualified endowment fund before the fund before the earlier of (a) the date Adjustment to taxable income—North earlier of (a) the date of death of the of death of the annuitant or (b) the date Dakota taxable income must be increased beneficiary or (b) the date that is five that is five years after the date of the by the amount of the charitable contribution years after the date of the contribution. upon which the credit is computed, but only contribution. to the extent that the contribution reduced Charitable remainder annuity trust—To Charitable life estate agreement—To federal taxable income. See the applicable qualify, both of the following must be met: qualify, the agreement must satisfy the line on Form ND-1 or Form ND-2. 1. The trust must be a trust defined under requirements of I.R.C. § 170(f)(3)(B). Qualified nonprofit organization. A I.R.C. § 664(d)(1). Paid-up life insurance policy—To qualify, qualified nonprofit organization means an 2. The trust agreement must contain a organization that: provision stating that the trust may not both of the following must be met: terminate and that the beneficiary’s 1. Is incorporated in North Dakota, or has 1. The policy must be a paid-up policy, i.e., interest in the trust may not be given to an established location in North Dakota, all premiums for the policy have been the qualified nonprofit organization or 2. Is tax-exempt under I.R.C. § 501(c), and paid, with no more premiums due in the qualified endowment fund before the 3. Is a charitable donee organization as future. earlier of (a) the date of death of the defined under I.R.C. § 170. 2. The gift of the policy qualifies as a beneficiary or (b) the date that is five charitable contribution under I.R.C. years after the date of the contribution. Qualified endowment fund. A qualified § 170. endowment fund means a permanent, Pooled income fund—To qualify, the irrevocable fund that meets all of the trust must be a trust defined under I.R.C. Line 4 following: § 642(c)(5). Enter the portion of all qualified planned 1. It is held by a qualified nonprofit Charitable gift annuity—To qualify, both gifts completed in 2008 for which a organization (as defined above). of the following must be met: charitable contribution deduction is allowed 2. It is comprised of cash, securities, mutual in 2008 for federal income tax purposes. 1. The annuity must be a qualified funds, or other investment assets. charitable gift annuity as defined for 3. It is established for a specific religious, Line 11 federal income tax purposes. educational, or other charitable purpose. 2. The annuity contract must contain a Enter on this line only that portion of the 4. It may expend only the income generated provision that states the annuitant’s tax credit on line 10 that you actually use to by, or the increase in value of, the assets interest in the gift annuity may not reduce your 2008 tax liability. For example, contributed to it. be assigned to the qualified nonprofit if the allowable tax credit on line 10 is organization or qualified endowment $1,000, but you only need $400 to reduce Specific line instructions fund before the earlier of (a) the date your tax liability to zero, enter $400 on of death of the annuitant or (b) the date line 11. Name and address that is five years after the date of the Lines 17 through 21 contribution. Enter the name of the qualified nonprofit organization to which the planned gift was If you entered an amount on line 4, you Charitable lead unitrust—To qualify, the made. If the planned gift was made to a must complete lines 17 through 21. If you arrangement must satisfy the requirements of qualified endowment fund, enter the name of are only carrying forward an unused credit I.R.C. § 170(f)(2)(B). the qualified nonprofit organization that holds from 2006 or 2007, do not complete lines 17 the endowment. If a bank, trust company, Charitable lead annuity trust— To through 21. or other entity administers the planned gift qualify, the arrangement must satisfy the Line 18 assets or qualified endowment fund on behalf requirements of I.R.C. § 170(f)(2)(B). of the qualified nonprofit organization, enter To determine the proper amount to enter Deferred charitable gift annuity—To the name and address of that entity in the on this line, see the instructions to the 2008 qualify, all of the following must be met: boxes provided on the schedule. Form 1040, line 40. 1. The annuity must be a qualified charitable gift annuity as defined for Line 21 Line 2 federal income tax purposes. If you are a part-year resident or a full-year Fill in the circle next to the type of qualified 2. The annuity contract must contain a nonresident, and you are using Form ND-2, planned gift on which the tax credit is provision that requires the payment see the instructions to Schedule 3, Part 1, based. To qualify for the credit, the qualified of the annuity to begin within the life line 12, to determine the adjustment amount. planned gift must consist of an irrevocable