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Hi all,

Hoping to seek guidance on booking the following:

An income recipient for a pooled income fund has decided to renounce their income interest. The PIF gift amount was $50,000 and the fund value ended up being $130,000, of which $20,000 is the remainder of the life interest and has been sent to the income recipient. 

I should note that the management of PIF at our institution is outsourced and we were sent a check for the $130,000. Question is: do we book any of the $130,000? Or should this all be considered residual income, cashed directly to the business office? 
Greatly appreciate any insight!

Best,

You need to contact whoever is managing these affairs for you. The short answer is no. The $130,000 should not be recorded as a gift. But the other answer is that there is going to be a gift to record!

You must ask the outside vendor for copies of the tax forms they are sending to the donor. Relinquishing future payments does result in an additional tax deduction - but not nearly the balance in the account.

John