1099 R with Code F

[Juan Carlos Garcia]

What is going on with this fact pattern?

The 1099R has 2,000 in box one and two. Box three shows 1300. The distrubtion code is F {Charitable annuity} and the box three is showing up on schedule D.

I'm sure my software is correct. I'm afraid the client will ask me what is going on and my boss is a jerk who knows nothing, but thinks she you know what does not stink. I'm a newbie and nervous.

Did they give something to charity and then get the income until they die?? Perhaps there is captial gain built in.

Thanks.

[geekgirldany]

There is information on it in the instructions for 1099R and 5498

http://www.irs.gov/pub/irs-pdf/i1099r.pdf

[Ken]

1099r

Box 3 IS for capital gain so the 1300 dollars should show up on schedule D and $700 dollars should remain as ordinary income.