Fillable Schedule Nd-1pg - Planned Gift Tax Credit

North Dakota Ofﬁ ce of State Tax Commissioner

2013 Schedule ND-1PG instructions

Page 1

General instructions

Line 2

Deferred charitable gift annuity—To

qualify, all of the following must be met:

An individual is allowed an income tax

Fill in the circle next to the type of qualiﬁ ed

credit for making a qualiﬁ ed planned gift to a

planned gift on which the tax credit is

1. The annuity must be a qualiﬁ ed

qualiﬁ ed nonproﬁ t organization or a qualiﬁ ed

based. To qualify for the credit, the qualiﬁ ed

charitable gift annuity as deﬁ ned for

endowment fund. See the instructions to

planned gift must consist of an irrevocable

federal income tax purposes.

line 2 for what is a qualiﬁ ed planned gift.

charitable contribution that was made using

2. The annuity contract must contain a

one of the following gifting methods:

provision that requires the payment

The credit must be claimed ﬁ rst in the tax

of the annuity to begin within the life

year in which the planned gift is made. The

Charitable remainder unitrust—To

expectancy of the annuitant or of the

unused portion of a credit for a planned gift

qualify, both of the following must apply:

joint life expectancies of the annuitants,

made in the 2013 tax year may be carried

1. The trust must be a trust deﬁ ned under

if more than one annuitant, using the

forward for up to three tax years.

I.R.C. § 664(d)(2).

actuarial tables applicable to determining

2. The trust agreement must contain a

Adjustment to taxable income—North

the federal charitable income tax

provision stating that the trust may not

Dakota taxable income must be increased

deduction on the date of the contribution.

terminate and that the beneﬁ ciary’s

by the amount of the charitable contribution

3. The annuity contract must contain a

interest in the trust may not be given to

upon which the credit is computed, but only

provision that states the annuitant’s

the qualiﬁ ed nonproﬁ t organization or

to the extent that the contribution reduced

interest in the gift annuity may not

qualiﬁ ed endowment fund before the

federal taxable income. See the instructions

be assigned to the qualiﬁ ed nonproﬁ t

earlier of (a) the date of death of the

to the 2013 Form ND-1, line 4a.

beneﬁ ciary or (b) the date that is ﬁ ve

organization or qualiﬁ ed endowment

Qualiﬁ ed nonproﬁ t organization. A

years after the date of the contribution.

fund before the earlier of (a) the date

qualiﬁ ed nonproﬁ t organization means an

of death of the annuitant or (b) the date

Charitable remainder annuity trust—To

organization that meets all of the following:

that is ﬁ ve years after the date of the

qualify, both of the following must be met:

1. Is incorporated or established in North

contribution.

1. The trust must be a trust deﬁ ned under

Dakota, and has a physical location in

I.R.C. § 664(d)(1).

North Dakota.

Charitable life estate agreement—To

2. The trust agreement must contain a

2. Is tax-exempt under I.R.C. § 501(c).

qualify, the agreement must satisfy the

provision stating that the trust may not

3. Is a charitable donee organization as

requirements of I.R.C. § 170(f)(3)(B).

terminate and that the beneﬁ ciary’s

deﬁ ned under I.R.C. § 170.

interest in the trust may not be given to

Paid-up life insurance policy—To qualify,

the qualiﬁ ed nonproﬁ t organization or

Qualiﬁ ed endowment fund. A qualiﬁ ed

both of the following must be met:

qualiﬁ ed endowment fund before the

endowment fund means a permanent,

1. The policy must be a paid-up policy, i.e.,

earlier of (a) the date of death of the

irrevocable fund that meets all of the

all premiums for the policy have been

beneﬁ ciary or (b) the date that is ﬁ ve

following:

paid, with no more premiums due in the

years after the date of the contribution.

1. It is held by a qualiﬁ ed nonproﬁ t

future.

organization (as deﬁ ned above).

Pooled income fund—To qualify, the

2. The gift of the policy qualiﬁ es as a

trust must be a trust deﬁ ned under I.R.C.

2. It is comprised of cash, securities, mutual

charitable contribution under I.R.C.

§ 642(c)(5).

funds, or other investment assets.

§ 170.

3. It is established for a speciﬁ c religious,

Charitable gift annuity—To qualify, both

educational, or other charitable purpose.

Line 4

of the following must be met:

4. It may expend only the income generated

Enter the portion of all qualiﬁ ed planned

1. The annuity must be a qualiﬁ ed

by, or the increase in value of, the assets

gifts completed in 2013 for which a

charitable gift annuity as deﬁ ned for

contributed to it.

federal income tax purposes.

charitable contribution deduction is allowed

2. The annuity contract must contain a

in 2013 for federal income tax purposes.

Speciﬁ c line instructions

provision that states the annuitant’s

interest in the gift annuity may not

Line 8

Name and address

be assigned to the qualiﬁ ed nonproﬁ t

Enter the allowable portion of an unused

Enter the name of the qualiﬁ ed nonproﬁ t

organization or qualiﬁ ed endowment

planned gift credit, if any, based on gifts

organization to which the planned gift was

fund before the earlier of (a) the date

made in the 2010 through 2012 tax years.

made. If the planned gift was made to a

of death of the annuitant or (b) the date

Use the unused credits in the order that is

qualiﬁ ed endowment fund, enter the name of

that is ﬁ ve years after the date of the

most beneﬁ cial.

the qualiﬁ ed nonproﬁ t organization that holds

contribution.

the endowment. If a bank, trust company,

Charitable lead unitrust—To qualify, the

Line 10

or other entity administers the planned gift

arrangement must satisfy the requirements of

Enter on this line only that portion of the

assets or qualiﬁ ed endowment fund on behalf

I.R.C. § 170(f)(2)(B).

tax credit on line 9 that is used to reduce

of the qualiﬁ ed nonproﬁ t organization, enter

the 2013 tax liability. For example, if the

the name and address of that entity in the

Charitable lead annuity trust— To

boxes provided on the schedule.

allowable tax credit on line 9 is $1,000,

qualify, the arrangement must satisfy the

but only $400 is needed to reduce the tax

requirements of I.R.C. § 170(f)(2)(B).

liability to zero, enter $400 on line 10.

Schedule Nd-1pg - Planned Gift Tax Credit - 2013 Page 2

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