Form Schd-ND-1QEC Qualified Endowment Fund Tax Credit

Adjustment amount Enter the smaller of line 4 or line 14 Enter this amount on Form ND 1 line 4a Enter the federal standard deduction that you would have been allowed on your 2012 Form 1040 had you not itemized deductions on Schedule A (Form 1040) See the instructions to the 2012 Form 1040 line 40 for amount to enter on this line If you are only carrying over an unused credit from 2011 do not complete lines 10 through 15 However see "Adjustment to taxable income" in instructions If you are only carrying over an unused credit from 2011 skip lines 1 through 5 and go to line 6 Schedule ND 1TC line 18 (a) Name of qualified(b) Address (c) Total amount endowment fund (number street apt no city state ZIP code) contributed 1 Enter the name address and the total amount contributed for each qualified endowment fund to which you contributed at least $5 000 during the 2012 tax year Do not enter the information for a qualified endowment fund to which you contributed less than $5 000 during the tax year 10 If you used Form 1040 and itemized your deductions on Schedule A for 2012 did you deduct the 2012 credit Multiply line 4 by 40% ( 40) 2012 Schedule ND 1QEC instructions 9 Unused credit carryover to 2013 tax year Adjustment to North Dakota taxable income Add lines 12 and 13 Adjustment to taxable income North Dakota taxable income must be increased by the amount of the charitable contribution upon which the credit is computed to the extent that the contribution results in a reduction to federal taxable income See the instructions to the 2012 Form ND 1 line 4a Amount of contribution eligible for credit Enter smaller of line 2 or line 3 Amount of line 7 used to reduce tax in 2012 See instructions Enter this amount on An individual is allowed an income tax credit for making one or more charitable contributions totaling at least $5 000 to a quali ed endowment fund assets Attach to Form ND 1 Calculation of credit Enter on this line only that portion of the total allowable credit on line 7 that is used to reduce the tax on the 2012 return For example if the allowable credit on line 7 is $1 000 but only $400 is needed to reduce the tax to zero enter $400 on line 8 Enter the allowable portion of an unused quali ed endowment fund credit if any based on contributions made in the 2011 tax year Enter the portion of the total allowable credit on line 7 that is being carried over to the 2013 tax year Example 1 A taxpayer makes one or more charitable contributions totaling $4 000 to Quali ed Endowment Fund A Because the total amount contributed is less than $5 000 none of the contributions qualify for the credit Do not enter any information for Quali ed Endowment Fund A on Schedule ND 1QEC Example 2 A taxpayer makes one or more charitable contributions totaling $4 000 to Quali ed Endowment Fund A and one or more charitable contributions totaling $1 000 to Quali ed Endowment Fund B None of the contributions qualify for the credit because the total amount contributed to either fund is not at least $5 000 Do not enter any information for either of the funds on Schedule ND 1QEC Example 3 A taxpayer makes one or more charitable contributions totaling $5 000 to Quali ed Endowment Fund A and one or more charitable contributions totaling $1 000 to Quali ed Endowment Fund B Only the $5 000 contributed to Quali ed Endowment Fund A quali es for the credit The $1 000 contributed to Quali ed Endowment Fund B does not qualify for the credit because it is less than $5 000 Only enter the information for Quali ed Endowment Fund A on Schedule ND 1QEC Example 4 A taxpayer makes a charitable contribution of $500 at the beginning of each month to Quali ed Endowment Fund A for a total contribution of $6 000 for the tax year Because the total amount contributed to Quali ed Endowment Fund A is at least $5 000 the tax credit is allowed on the entire $6 000 Enter the information for Quali ed Endowment Fund A on Schedule ND 1QEC General instructions If line 2 includes an amount transferred from an individual retirement account (IRA) to a qualified endowment fund under Internal Revenue Code section 408(d) enter that amount on this line; otherwise enter zero See instructions If the amount on line 2 includes a charitable contribution made to a quali ed endowment fund by means of a trustee to donee transfer of monies from an individual retirement account (IRA) under Internal Revenue Code section 408(d) enter that amount on this line A charitable contribution made in this manner reduces federal taxable income because the transferred monies which would be subject to federal income tax had they not been contributed to charity are excluded from federal taxable income To the extent these monies are the basis for the quali ed endowment fund tax credit they must be added back into North Dakota taxable income If the entire credit cannot be used on the 2012 return the unused portion may be carried over and used on subsequent tax years returns for up to three years In columns (a) and (b) enter the name and address of each quali ed endowment fund to which you made one or more charitable contributions totaling at least $5 000 during the 2012 tax year See below for examples of the application of the $5 000 minimum contribution requirement In column (c) enter the total amount contributed to each quali ed endowment fund entered in column (a) It is a charitable donee organization as de ned under I R C 170 It is comprised of cash securities It is established for a speci c religious educational or other charitable purpose It is held by a quali ed nonpro t It is incorporated or established in North Dakota and has a physical presence in North Dakota It is tax exempt under I R C 501(c) It may expend only the income generated by or the increase in value of the assets contributed to it Line 1 Line 13 Line 6 Line 8 Line 9 Maximum contribution eligible for credit If married filing jointly enter $50 000; otherwise enter $25 000 mutual funds or other investment ND 1QEC Qualified endowment fund 2012 No double bene t A charitable contribution that is the basis for this credit may not be used as the basis for any other tax credit allowed for income tax purposes No Skip lines 10 and 11 enter 0 on line 12 and go to line 13 North Dakota Of ce of State Tax Commissioner organization (as de ned below) Please type or print in black or blue ink See separate instructions Quali ed endowment fund A quali ed endowment fund means a permanent irrevocable fund that meets all of the following: Quali ed nonpro t organization A quali ed nonpro t organization means an organization that meets all of the following: qualified endowment contribution (reported on line 2 of Schedule ND 1QEC) as a charitable contribution on Schedule A? Qualified endowment fund information Schedule North Dakota Office of State Tax Commissioner Speci c line instructions Subtract line 11 from line 10 If result is less than zero enter 0 tax credit Total amount contributed Add the amounts in column (c) of line 1 Total available credit Add lines 5 and 6 Unused credit carryover if any from prior tax year(s) Yes Enter the amount from Schedule A (Form 1040) line 29