K-1 Box 14 Code I

[Justataxguy]

Client has 3 K-1's from charitable remainder trusts. This year they all have an amount in box 14 with code I. The "Other Information" explanation on page 2 has a description "Corpus", then the amount, then "Beneficiary Filing Instructions" which say " see beneficiary instructions for sch. K-1 (form 1041)". When I look at them I am drawing a blank. Box 14 code I input screen is a protected field I cannot modify, and the instructions for entering via the Q&A process say the same thing (see bene....) with no Code I box to enter info. The past 3 years there has been an amount in Box 14 coded E (net investment income) which equals the the box 2A amount. However the amounts coded I are not the same as 2A, 2 are higher and 1 is lower. Client is going to check with the trusts to see if he can get any more info. Any suggestions as to where these numbers go?

[Justataxguy]

I just found the following definition of "Corpus" - "fiduciary tax accounting
... the classification of all receipts and disbursements as either principal (corpus) or income."

And on my line 21 "Other Income" worksheet there is a line to enter "Other income from Sch. K-1". Probably goes there?

[mastertaxguy]

K-1 other information

1. What you describe looks like a return of corpus.
2. Perhaps the charitable annuity had to 'invade' the original principal amount of the contribution made by the taxpayers to meet the "guaranteed" 2014 payout. If this is the case, I suppose there might be some sort of recovery of a prior charitable deduction, but beyond the scope of this post.
a. Maybe the amount in Box 1 and the box 14 code I amount equal what they have received in prior years?
b. Maybe the same thing has been done in the past with this charitable.
3. I noticed the software we use (from Franklin, NC) does NOT Permit a fiduciary K-1 code I entry in box 14 of the K-1 data screen, but does permit it for boxes 12 and 13.

[Roland Slugg]

On a trust's K-1 an amount on line 14, code I is almost always the total of the cash distributions paid during the year. Your indication that is says "corpus" is a further indication that's what it is. Unless you get additional information from the trustee to the contrary, you can ignore it. If it was taxable income of some kind, it would be on one of the other lines on the K-1.