Instructions For Form 5227 - Split-Interest Trust Information Return - 1994 Page 4
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7Schedules, or that are an exact copy of
income (but not loss) in each of the
Line 30—Receivables Due From
an IRS Schedule K-1. Other substitute
above categories.
Officers, Directors, Trustees, and
Schedules K-1 require approval. You
Other Disqualified Persons
The accumulation distribution rules do
may apply for approval of a substitute
not apply to charitable remainder trusts.
Enter here (and in an attached schedule
form by writing to: Internal Revenue
See Regulations section 1.664-1(d).
described below) all receivables due
Service; Attention: Substitute Forms
from officers, directors, trustees, and
Program Coordinator, PC:FP:FS, 1111
Part IV—Balance Sheet
other disqualified persons and all
Constitution Avenue, N.W., Washington,
secured and unsecured loans (including
Complete the balance sheet using the
DC 20224.
advances) to such persons.
accounting method the trust uses in
Inclusion of Amounts in
keeping its books and records. All filers
Attached Schedule.—
Recipients’ Income
must complete columns (a) and (b). All
1. In the required schedule, report
unitrusts must also complete column (c).
If there are two or more recipients, each
each loan separately, even if more than
When space is provided to the left of
will be treated as receiving his or her pro
one loan was made to the same person,
column (a) for reporting receivables and
rata share of the various classes of
or the same terms apply to all loans
the related allowance for doubtful
income or corpus.
made.
accounts or depreciable assets and
Amounts distributed by a charitable
Salary advances and other advances
accumulated depreciation, enter the
remainder annuity trust or a charitable
for personal use and benefit, and
end-of-year figures.
remainder unitrust have the following
receivables subject to special terms or
characteristics in the hands of the
arising from transactions not functionally
Column (c)
recipients:
related to the trust’s charitable purposes
In computing the net fair market value
must be reported as separate loans for
First, as ordinary income to the extent
(FMV) of the unitrust’s assets, take into
each officer, director, etc.
of current and undistributed ordinary
account all assets and liabilities without
income for prior years of the trust.
2. Receivables that are subject to the
regard to whether particular items are
Ordinary income is computed without
same terms and conditions (including
taken into account in determining the
regard to any net operating loss
credit limits and rate of interest) as
income of the trust. The net FMV of the
deductions under section 172.
receivables due from the general public
trust’s assets may be determined on any
and that arose in connection with an
Second, as capital gains to the extent
one date during the taxable year of the
activity functionally related to the trust’s
of the trust’s undistributed capital gains.
trust, or by taking the average of
charitable purposes may be reported as
Undistributed capital gains of the trust
valuations made on more than one date
a single total for all the officers,
are determined on a cumulative net
during the tax year of the trust, so long
directors, etc. Travel advances made in
basis under the following rules without
as the same valuation date or dates and
connection with official business of the
regard to any capital loss carrybacks
valuation methods are used each year.
trust may also be reported as a single
and carryovers:
See Regulations section 1.664-3.
total.
1. If, in any tax year of the trust, the
Line 27—Cash—Non-Interest Bearing
For each outstanding loan or other
trust has both undistributed short-term
receivable that must be reported
capital gain and undistributed long-term
Enter the amount of cash on deposit in
separately, the attached schedule should
capital gain, the short-term capital gain
checking accounts, deposits in transit,
show the following information. Use
is deemed distributed before any
change funds, petty cash funds, or any
columnar format:
long-term capital gain.
other non-interest-bearing account. Do
Borrower’s name and title.
not include advances to employees or
2. If the trust has capital losses in
officers or refundable deposits paid to
excess of capital gains for any tax year:
Original amount.
suppliers or others.
a. The excess of the net short-term
Balance due.
capital loss over the net long-term
Date of note.
Line 28—Savings and Temporary Cash
capital gain for that year is a short-term
Investments
Maturity date.
capital loss in the next tax year.
Repayment terms.
Enter the total of cash in savings or
b. The excess of the net long-term
other interest-bearing accounts and
Interest rate.
capital loss over the net short-term
temporary cash investments, such as
Security provided by the borrower.
capital gain for that year is a long-term
money market funds, commercial paper,
capital loss in the next tax year.
Purpose of the loan.
certificates of deposit, and U.S. Treasury
3. If the trust has capital gains in
Description and FMV of the
bills or other governmental obligations
excess of capital losses for any tax year:
consideration furnished by the lender.
that mature in less than one year.
a. The excess of the net short-term
The above detail is not required for
Line 29—Accounts Receivable
capital gain over the net long-term
receivables or travel advances that may
capital loss for that year is, to the extent
Enter the total accounts receivable
be reported as a single total (see
not deemed distributed, a short-term
(reduced by the corresponding
instruction 2 above). However, report
capital gain in the next tax year.
and identify those totals separately in
allowance for doubtful accounts) that
arose from the sale of goods and/or the
the attachment.
b. The excess of the net long-term
capital gain over the net short-term
performance of services. Claims against
Line 31—Other Notes and Loans
vendors or refundable deposits with
capital loss for that year is, to the extent
Receivable
suppliers or others may be reported here
not deemed distributed, a long-term
if not significant in amount. (Otherwise,
capital gain in the next tax year.
Enter the combined total of notes
report them on line 38, Other Assets.)
receivable and net loans receivable.
Third, as nontaxable income to the
Any receivables due from officers,
extent of the trust’s nontaxable income
Notes Receivable.—Enter the amount
directors, trustees, foundation managers,
for the current year and undistributed
of all notes receivable not listed on line
or other disqualified persons must be
nontaxable income for prior years.
30 and not acquired as investments.
reported on line 30. Receivables
Attach a schedule similar to that called
Fourth, as a distribution of trust
(including loans and advances) due from
for in the line 30 instructions. The
corpus. For this purpose, “trust corpus”
other employees should be reported on
schedule should also identify the
means the net fair market value of the
line 38.
relationship of the borrower to any
trust assets less the total undistributed
Page 4
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