Form 541 Schedule J PDF Details

The 541 Schedule J form plays a crucial role for trusts in California, designed to manage and report accumulation distributions accurately. It attaches to the Form 541, California Fiduciary Income Tax Return, and addresses complex areas such as trust allocation of an accumulation distribution for both domestic complex trusts and certain foreign trusts. This form delves into the specifics of accumulation distributions, including definitions, special rules, and the intricate process of allocation to beneficiaries with reference to both the Internal Revenue Code (IRC) as of January 1, 2009, and the California Revenue and Taxation Code (R&TC). It also provides detailed instructions on how to account for ordinary income accumulation distributions and taxes imposed on undistributed net income, with a special emphasis on past taxable years, known as "throwback years". Moreover, it offers guidance for cases involving more than one beneficiary or when the trust receives an accumulation distribution from another trust, reflecting California's adherence to federal provisions while noting exceptions specific to state law. The form is meticulously designed to ensure that the complex mechanism of allocation to beneficiaries is transparent, equitable, and in compliance with both state and federal regulations.

QuestionAnswer
Form NameForm 541 Schedule J
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other nameswpapae, F-1, 2011, california

Form Preview Example

TAXABLE YEAR

CALIFORNIA SCHEDULE

 

 

 

2011 TRUST ALLOCATION OF AN ACCUMULATION DISTRIBUTION

J (541)

ATTACH TO FORM 541.

References are to the Internal Revenue Code (IRC), as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).

Name of trust

PART I  Accumulation Distribution

FEIN

-

For definitions and special rules, see the federal Treasury Regulations under IRC Sections 665–668. See the instructions for federal Form 4970, Tax on Accumulation Distribution of Trusts, for certain income minors may exclude and for special rules for multiple trusts.

1

Enter amount from 2011

Schedule B (541), line 10

. .

. . . . . . . . . . . . . . . . . . . . . 1

___________________

2

Enter amount from 2011

Schedule B (541), line 7

2

___________________

 

3

Enter amount from 2011

Schedule B (541), line 9

3

___________________

 

4

2011 distributable net income. Subtract line 3 from line 2. If line 3 is more than line 2, enter -0-. .

. .

. . . . . . . . . . . . . . . . . . . . . 4

___________________

5

2011 accumulation distribution. Subtract line 4 from line 1

. .

. . . . . . . . . . . . . . . . . . . . . 5

___________________

PART II  Ordinary Income Accumulation Distribution. Enter the applicable throwback years below.

If the distribution is thrown back more than four years (starting with

 

Throwback year

Throwback year

Throwback year

Throwback year

the earliest applicable taxable year beginning after December 31, 1968),

ending

ending

ending

ending

attach additional schedules. If the trust was a simple trust, see federal

 

__________

__________

__________

__________

Treasury Regulation Section 1.665(e) – 1A(b).

 

 

 

 

 

 

 

 

 

 

 

 

 

6

Distributable net income. See instructions

6

 

 

 

 

7

Distributions. See instructions

7

 

 

 

 

8

Undistributed net income. Subtract line 7 from line 6

8

 

 

 

 

9

Enter amount from Part III, line 25

9

 

 

 

 

10

Subtract line 9 from line 8

10

 

 

 

 

11Enter amount of prior accumulation distributions thrown back

to any of these years

11

12 Subtract line 11 from line 10

12

13Allocate the amount on line 5 to the earliest applicable taxable

 

year first. Do not allocate an amount greater than the amount

 

 

on line 12 for the same year

13

14

Divide line 13 by line 10 and multiply the result by line 9

14

15

Add line 13 and line 14

15

16

Tax-exempt interest included on line 13. See instructions

16

17

Subtract line 16 from line 15

17

PART III  Taxes Imposed on Undistributed Net Income. Enter the applicable throwback years below.

If more than four throwback years are involved, attach additional

Throwback year

Throwback year

Throwback year

Throwback year

schedules. See General Instructions. If the trust received an

ending

ending

ending

ending

accumulation distribution from another trust, see the federal

__________

__________

__________

__________

Treasury Regulations under IRC Sections 665-668.

 

 

 

 

 

 

 

 

 

 

18

Tax. See instructions

18

 

 

 

19

Total net capital gain. Enter amount from Form 541, Side 1,

 

 

 

 

 

line 6, for 1969-1979; Form 541, Side 1, line 7,

 

 

 

 

 

for 1980-1986; Form 541, Side 1, line 6, for 1987-1990;

 

 

 

 

 

Form 541, Side 1, line 4, for 1991-2010

19

 

 

 

20

Net capital gain distributed to beneficiaries. See instructions . .

20

 

 

 

21

Net capital gain undistributed. Subtract line 20 from

 

 

 

 

 

line 19

21

 

 

 

22

Total taxable income. See instructions

22

 

 

 

23Enter percent (divide line 21 by line 22) but not more

than 100%

23

24 Multiply amount on line 18 by percent on line 23

24

25Tax on undistributed net income. Subtract line 24 from

line 18. Enter here and on Part II, line 9

25

7861113

Schedule J (541) 2011 Side 1

PART IV  Allocation to Beneficiary. See Part IV Instructions below. Complete Part IV for each beneficiary.

If the accumulation distribution is allocated to more than one beneficiary, attach an additional Schedule J with Part IV completed for each additional beneficiary. If more than four throwback years are involved, attach additional schedules.

Beneficiary’s name

 

 

 

Identifying number

 

 

 

 

 

 

 

Beneficiary’s address (number and street, PO Box, or PMB no.)

Apt. no./Ste. no.

(a)

(b)

(c)

 

 

 

 

Enter amount from

Enter amount from

Enter amount from

 

 

 

 

Part II, line 13

Part II, line 14

Part II, line 16

City, State, and ZIP Code

 

 

 

 

allocated to this

allocated to this

allocated to this

 

 

 

 

 

 

 

 

beneficiary

beneficiary

beneficiary

 

 

 

 

 

 

26

Throwback year ending ________

. . . . . . . .

26

 

 

 

27

Throwback year ending ________

. . . . . . . .

27

 

 

 

28

Throwback year ending ________

. . . . . . . .

28

 

 

 

29

Throwback year ending ________

. . . . . . . .

29

 

 

 

30

Total. Add amounts from line 26 through line 29

. . . . . . . .

30

 

 

 

General Information

California has conformed to federal provisions of the Taxpayer Relief Act of 1997 repealing the throwback rules for certain domestic trusts. However, if the trust did not pay tax on the beneficiary’s interest because the beneficiary was contingent, the income that would have been taxed is included by the beneficiary in the year it is distributable or distributed; see California Revenue and Taxation Code (R&TC) Section 17745(b).

Purpose

File Schedule J (541), Trust Allocation of an Accumulation Distribution, with Form 541, California Fiduciary Income Tax Return, to report an accumulation distribution by domestic complex trusts and certain foreign trusts.

Access by Internet

You can download, view, and print California tax forms and publications at ftb.ca.gov.

Specific Instructions

Part I

Accumulation Distribution in 2011

Generally, the beneficiary may exclude amounts accumulated before the beneficiary becomes

age 21. For multiple trusts exceptions, see Internal Revenue Code (IRC) Sections 665 and 667(c). The trustee reports the total amount of the accumulation distribution before any reduction for income accumulated before the beneficiary becomes age 21. The beneficiary claims the exclusion when filing form FTB 5870A, Tax on Accumulation Distribution of Trusts, if the multiple trust rules do not apply. This is because one trustee may be unaware that the beneficiary may be a beneficiary of other trusts with other trustees.

Part II

You must complete Part III before completing this part.

Ordinary Income Accumulation Distribution

Line 6 – Distributable net income for earlier years. Enter the applicable amounts as follows:

Throwback Year(s):

Amount From:

1969-1978 . . . . . . . . Schedule H, (Form 541), line 5 1979 . . . . . . . . . . . . . . . . . Part D, (Form 541), line 5 1980 . . . . . . . . . . . . . . . . . . . . . . . .Form 541, line 55 1981-1984 . . . . . . . . . . . . . . . . . . .Form 541, line 57 1985-1986 . . . . . . . .Schedule 3, (Form 541), line 11 1987 . . . . . . . . . . . . . .Schedule 3, (Form 541), line 9 1988-1998 . . . . . . . . Schedule B, (Form 541), line 8 1999-2010 . . . . . . . . Schedule B, (Form 541), line 7

Line 7 – Distributions made during earlier years. Enter the applicable amounts as follows:

Throwback Year(s):

Amount From:

1969-1978 . . . . . . . . . Schedule I, (Form 541), line 3 1979 . . . . . . . . . . . . . . . . . Part D, (Form 541), line 8 1980 . . . . . . . . . . . . . . . . . . . . . . . .Form 541, line 58 1981-1984 . . . . . . . . . . . . . . . . . . .Form 541, line 60 1985-1986 . . . . . . . .Schedule 3, (Form 541), line 14 1987 . . . . . . . . . . . . .Schedule 3, (Form 541), line 13 1988-1998 . . . . . . . Schedule B, (Form 541), line 12 1999-2010 . . . . . . . Schedule B, (Form 541), line 11

Line 16 – Tax-exempt interest included on line 13. For each throwback year, divide line 15 by line 6 and multiply the result by one of the following:

Throwback Year(s):

Amount From:

1969-1978 . . . . . . Schedule H, (Form 541), line 2(a) 1979 . . . . . . . . . . . . . . . Part D, (Form 541), line 2(a) 1980 . . . . . . . . . . . . . . . . . . . . . Form 541, line 52(a) 1981-1984 . . . . . . . . . . . . . . . . Form 541, line 54(a) 1985-1986 . . . . . . . . Schedule 3, (Form 541), line 3 1987 . . . . . . . . . . . . . Schedule 3, (Form 541), line 2 1988-2010 . . . . . . . . Schedule B, (Form 541), line 2

Part III

Taxes Imposed on Undistributed Net Income

For the regular tax computation, if there is a capital gain, complete line 18 through line 25 for each throwback year. If there is no capital gain for any year (or there is a capital loss for every year), enter on line 9 the amount of the tax for each year entered for line 18; do not complete Part III.

If the trust received an accumulation distribution from another trust, see the federal Treasury Regulations under IRC Sections 665-668.

Line 18 – Tax

Enter the applicable tax amounts as follows:

Throwback Year(s):

Amount From:

1969 . . . . . . . . . . . . . . . . . . . . . . . .Form 541, line 20 1970-1971 . . . . . . . . . . . . . . . . . . .Form 541, line 21 1972-1979 . . . . . . . . . . . . . . . . . . .Form 541, line 19 1980-1981 . . . . . . . . . . . . . . . . . . .Form 541, line 23 1982-1984 . . . . . . . . . . . . . . . . Form 541, line 23(c) 1985-1986 . . . . . . . . . . . . . . . . Form 541, line 24(c) 1987-1989 . . . . . . . . . . . . . . . . Form 541, line 22(c) 1990-1996 . . . . . . . . . . . . . . . . Form 541, line 20(a) 1997-2010 . . . . . . . . . . . . . . . . Form 541, line 21(a)

Line 20 – Enter the applicable net capital gain distributed as follows:

Throwback Year(s):

Amount From:

1969. . . . . . . Form 541, Side 1, line 17 plus amounts from Schedule F-1 (541), lines 1 and 2 1970-1971 . . Form 541, Side 1, line 18 plus amounts from Schedule F-1 (541), lines 1 and 2

1972-1979 . . . . . .Schedule F-1 (541), lines 1(a)-1(c) 1980. . . . . . . . . . . . . . . Schedule K-1 (541), lines 2-4

1981. . . . . . . . . . . . . . . Schedule K-1 (541), lines 1-3

1982. . . . . . . . . . . . . . . . . . Schedule D (541), line 25

1983. . . . . . . . . . . . . . . . . . Schedule D (541), line 30

1984. . . . . . . . . . . . . . . . . . Schedule D (541), line 33 1985-1986 . . . . . . . . . . . . . Schedule D (541), line 28 1987. . . . . . . . . . . . . . . . . . Schedule D (541), line 24 1988-2010 . . . . . . . . . . . . Schedule D (541), line 9(a)

Line 22 – Total taxable income

Enter the applicable amounts as follows:

Throwback Year(s):

Amount From:

1969 . . . . . . . . . . . . . . . . . . . . . . . .Form 541, line 19 1970-1971 . . . . . . . . . . . . . . . . . . .Form 541, line 20 1972-1979 . . . . . . . . . . . . . . . . . . .Form 541, line 18 1980-1984 . . . . . . . . . . . . . . . . . . .Form 541, line 22 1985-1986 . . . . . . . . . . . . . . . . . . .Form 541, line 23 1987-1989 . . . . . . . . . . . . . . . . . . .Form 541, line 21 1990-1996 . . . . . . . . . . . . . . . . . . .Form 541, line 19 1997-2010 . . . . . . . . . . . . . . . . . . .Form 541, line 20

Part IV

Allocation to Beneficiary

Complete Part IV for each beneficiary. If the accumulation distribution is allocated to more than one beneficiary, attach an additional copy of Schedule J with Part IV completed for each additional beneficiary. If more than four throwback years are involved, attach additional schedules.

Nonresident Beneficiaries. In the case of a nonresident beneficiary, enter on line 26 through line 29, column (a), only that ratio of income from California sources as the amount on Part II, line 13 bears to the amount on Part II, line 10. Enter on line 26 through line 29, column (b), only that ratio of the amount on Part II, line 14 as the amount in column (a) bears to the amount on Part II, line 13.

Attach separate schedules supporting allocation of income to sources within and outside California.

Under R&TC Section 17953, income from trusts deemed distributed to nonresident beneficiaries is income from sources within California only if derived out of trust income derived from sources within California. Generally, for purposes of R&TC Section 17953, the nonresident beneficiary shall be deemed to be the owner of intangible personal property from which the income of the trust is derived.

If the beneficiary is a nonresident individual or a foreign corporation, see IRC Section 667(e) about retaining the character of the amounts distributed to determine the amount of withholding tax.

The beneficiary may use form FTB 5870A to compute the tax on the distribution.

Side 2 Schedule J (541) 2011

7862113

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