As income tax rates rise on estates, trusts, and their beneficiaries, consideration of the income tax effects becomes more critical. The purpose of this course is to explain the complicated income tax rules of estates and trusts, fiduciary accounting, and how to prepare Form 1041. This practical, over 300-page manual is an excellent reference source for your practice.

OBJECTIVES: Upon completion of this course, participants will be able to be aware of fiduciary accounting principles, calculate distributable net income and the income distribution deduction, and prepare Form 1041 and Schedule K-1

HIGHLIGHTS:

• Dividing income in the year of death
• Overview of Subchapter J
• Income tax issues of estates and trusts
• Form preparation issues – Filing requirements and line-by-line explanations of Form 1041
• Taxable income of estates and trusts and expense allocation issues
• Specific deductions and miscellaneous itemized deductions
• Pension plan issues and income in respect of a decedent
• Distributable net income (DNI) and the income distribution deduction
• Calculation of DNI and computation of distribution deduction on Schedule B
• Principal and Income Act of 1997
• Relation of principal and income law to DNI
• Understanding how to handle capital gains and losses under final regulations
• Tax-planning concerns and special issues
• Allocating tax items to beneficiaries: another K-1
• Comprehensive estate case study

WHO WILL BENEFIT: CPAs whose practice includes the preparation of fiduciary income tax returns

PREREQUISITE: A basic course on estates and trusts; preparation of income tax returns

LEVEL: Intermediate

NASBA FIELD OF STUDY: Taxation 8

PRODUCER: Surgent McCoy CPE, LLC