I am preparing a 1041 for 2010 (fiscal year) for a decedent's probate estate. The gross income (interest, dividends
, capital gains, IRA distributions) is $81,230. The will provides for the residuary estate to be divided into 26 shares, however, one individual receives 5/26ths (19.24%), 15 individuals each receive 1/26th (3.84), one organization (a state right to life organization, not their charitable trust) receives 1/26th (software rounded to 3.86%) , and five qualifying charities receive 1/26th each for a total of 19.3%. A substantial distribution of the estate was made within the fiscal year, so more principal was distributed to all beneficiaries than income. No net income is allocated to the estate. On schedule A of the 1041 for the charitable deduction
, do I multiply the gross income of $83,751 x 19.3%? The gross charitable deduction is $16,163? Then there is an allocation of federal tax
exempt interest of $873. My software calculated a net charitable deduction and then it reduced the amount of income to be eligible for the income distribution deduction to the 16 individuals and 1 non-qualifying charitable. But the K-1s used the correct percentages for the individual beneficiaries of the estate, but for the non-qualifying beneficiary, it allocated the missing percentages to it, and increased it's share of interest, etc. I am confused as to how to properly claim the charitable deduction, and how to allocate the remaining 17 beneficiaries' shares equally on the K-1s. Any help you can provide will be greatly appreciated.