Instructions For The Pa-41 Schedule Dd - Distribution Deductions - 2013 Page 3
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3CAUTION This deduction is only
No amount included on Line 2a or 2b of
DD, Line 1a or PA-41 Schedule DD,
allowed if the governing instru-
PA-41 Schedule DD will be considered
Line 1b in the case of a nonresident es-
ment requires that all or a part of the in-
permanently set aside or used exclu-
tate or trust, where such receipts or pro-
come is set aside for a purely religious,
sively for the benefit of such organiza-
ceeds are the only items of income for
charitable, scientific, literary or educa-
tions unless, under applicable law or
the year.
tional organization, and this amount
the terms of the estate or trust’s govern-
Otherwise, the charitable deduction is
cannot be set aside to benefit a taxable
ing instrument and the circumstances of
beneficiary.
that portion of the amount reported on
the particular case, the possibility that
PA-41 Schedule DD, Line 2a or PA-41
the amount set aside or to be used will
For example, if there is a possibility that
Schedule DD, Line 2b in the case of a
not be disbursed, distributed or used for
the amount may be used to make up
the benefit of such an organization is so
nonresident estate or trust, which the
part of a payment of a guaranteed
remote as to be negligible.
amount actually retained, accumulated,
amount to a taxable beneficiary, this
and set aside for the taxable year ex-
amount may not be deducted.
Example. Where there is a possibility
clusively for the benefit charity bears to
of the invasion of corpus of a charitable
An estate or trust qualifies for a charita-
the total amount actually retained, ac-
remainder trust in order to make pay-
ble distribution deduction if it is uncon-
cumulated, and set aside for the taxable
ment of the annuity amount or unitrust
ditionally required under applicable law,
year.
amount, the estate or trust may not take
or its governing instrument, to retain
a deduction.
and permanently set aside all or a de-
LINE 17
terminable part of its retained total in-
Calculation of Charitable
come for the taxable year exclusively
Distribution Deduction
Total Deduction from
for the benefit of a purely religious,
If applicable law or governing instru-
PA Schedule DD
charitable, scientific, literary, or educa-
ment specifically provides the source
Add Lines 15 and 16. Enter the result
tional organization.
from which the estate or trust shall set
here and on PA-41, Fiduciary Income
aside proceeds or receipts exclusively
This line contains only the portion of the
Tax Return, Line 8.
income from Line 2a, 2b, or both, that
for charity, the amount of the charitable
satisfies the conditions in the preceding
deduction is the amount that would be
sentence.
properly reported on PA-41 Schedule
PA-41 Schedule DD
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