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September 29, 2022
2022-1457

Tax Court holds farmers don't get charitable deductions for donating crops to CRATs and income from crops is taxable to them

In Donald Furrer, et ux. v. Commissioner, the Tax Court has held that a farming couple could not  claim charitable deductions for in-kind contributions of crops they made to two charitable remainder annuity trusts (CRATs), which then sold the crops and used the proceeds to buy annuity plans that paid cash distributions to the couple. Further, the Tax Court held the couple must include the annuity distributions in income for the years at issue.

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Furrer v CIR

 

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