1041
FIDUCIARY INCOME TAX RETURNS - FORM 1041 WORKSHOP

How does new law on transfer tax affect the income tax law? 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 manual is an excellent reference source for your practice.

Major Topics

• 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
• Merging estate and trusts for income tax purposes
• 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
• Relation of principal and income law to DNI
• Understanding how to handle capital gains and losses under final regulations
• Principal and Income Act of 1997
• Tax-planning concerns and special issues
• Allocating tax items to beneficiaries: another K-1
• Comprehensive estate case study

Learning Objectives

• Be aware of fiduciary accounting principles
• Calculate Distributable Net Income and the income distribution deduction
• Prepare Form 1041 and Schedule K-1

Designed For: CPAs whose practice includes the preparation of fiduciary income tax returns.

Level of Knowledge: Intermediate

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