Capital Gains Rules Applied to Distributions from Charitable Remainder Trusts

The Internal Revenue Service recently issued Notice 98-20, which explains how the recent changes in capital gains rates affect capital gains distributions from charitable remainder trusts. The IRS plans to issue regulations that incorporate the guidance in Notice 98-20, effective for taxable years beginning on or after January 1, 1998. The rules in Notice 98-20 may also be relied on, however, for the 1997 taxable year.

Topics discussed in this White Paper:

1. General Rule
2. Pre-1997 Long-Term Capital Gains
3. 1997 Pre-Effective Date in Long-Term Capital Gains
4. Reporting

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