§ 1.6011-15 Charitable remainder annuity trust listed transaction.
(a)In general. Transactions that are the same as, or substantially similar to, a transaction described in paragraph (b) of this section are identified as listed transactions for purposes of § 1.6011-4(b)(2). (b)Charitable remainder annuity trusts. A transaction is described in this paragraph (b) if:
(1)The grantor creates a trust purporting to qualify as a charitable remainder annuity trust under section 664(d)(1) of the Internal Revenue Code (Code);
(2)The grantor funds the trust with property having a fair market value in excess of its basis (contributed property);
(3)The trustee sells the contributed property;
(4)The trustee uses some or all of the proceeds from the sale of the contributed property to purchase
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§ 1.6011-15 Charitable remainder annuity trust listed transaction.
(a) In general. Transactions that are the same as, or substantially similar to, a transaction described in paragraph (b) of this section are identified as listed transactions for purposes of § 1.6011-4(b)(2).
(b) Charitable remainder annuity trusts. A transaction is described in this paragraph (b) if:
(1) The grantor creates a trust purporting to qualify as a charitable remainder annuity trust under section 664(d)(1) of the Internal Revenue Code (Code);
(2) The grantor funds the trust with property having a fair market value in excess of its basis (contributed property);
(3) The trustee sells the contributed property;
(4) The trustee uses some or all of the proceeds from the sale of the contributed property to purchase an annuity; and
(5) On a Federal income tax return, the beneficiary of the trust treats the annuity amount payable from the trust as if it were, in whole or in part, an annuity payment subject to section 72 of the Code, instead of as carrying out to the beneficiary amounts in the ordinary income and capital gain tiers of the trust in accordance with section 664(b).
(c) Participation—(1) In general. A taxpayer has participated in a transaction identified as a listed transaction in paragraph (a) of this section if the taxpayer's tax return reflects tax consequences or a tax strategy described in this section as provided under § 1.6011-4(c)(3)(i)(A). These tax consequences include those tax consequences that would affect any gift tax return, whether or not such gift tax return was filed. See § 25.6011-4 of this chapter.
(2) Treatment of charitable remainderman. An organization described in section 170(c) of the Code that the purported charitable remainder annuity trust designates as a recipient of the remainder interest described in section 664(d)(1) is not treated as a participant under § 1.6011-4(c)(3)(i)(A) in the transaction described in this section solely by reason of its status as a recipient of the remainder interest described in section 664(d)(1).
(d) Treatment of charitable remainderman under section 4965. A tax-exempt entity (as defined in section 4965 of the Code) that is an organization described in section 170(c) and that the purported charitable remainder annuity trust designates as a recipient of the remainder interest described in section 664(d)(1) is not treated as a party to the transaction described in this section for purposes of section 4965 solely by reason of its status as a recipient of the remainder interest described in section 664(d)(1).
(e) Applicability date. This section's identification of transactions that are the same as, or substantially similar to, the transaction described in paragraph (b) of this section as listed transactions for purposes of § 1.6011-4(b)(2) is effective on July 9, 2026.
[T.D. 10051, 91 FR 42355, July 9, 2026]