The use of trusts must be re-evaluated in a post-tax reform world, with higher income tax rates for both the trust and its beneficiaries. Practitioners who understand the basics of Subchapter J and Form 1041 compliance soon encounter complex problems requiring sophisticated applications. This course concentrates on the most difficult issues in practice.
DESIGNED FOR
CPAs who are heavily involved in Form 1041 preparation.
BENEFITS
- Identify items of income in respect of a decedent (IRD) and calculate the §691(c) deduction
- Understand how depreciation and alternative minimum tax applies to estates and trusts
- Prepare Form 1041 and Form 5227 for charitable trusts
- Distinguish between grantor and non-grantor trusts
HIGHLIGHTS
- Merging estate and trusts for income tax purposes
- Special problems of estates and trusts relating to the new 3.8 percent tax on investment income
- Alternative minimum tax for trusts and estates (Schedule G)
- Grantor trusts: identification and compliance issues
- Income in respect of a decedent, deductions in respect of a decedent, and the §691(c) deduction: calculation and allocation
- Funding pecuniary marital trusts
- Charitable deductions (Schedule A)
- Charitable remainder trusts (Form 5227) and the new ordering rules
- Depreciation problems and special issues of holding rental real estate
- Special problems for a trust or estate holding a partnership interest or S corporation stock (ESBTs and QSSTs)
COURSE LEVEL
Advanced
PREREQUISITES
A course in Form 1041 preparation and experience in preparation.
ADVANCE PREPARATION
None
ADDITIONAL NOTES
- This seminar qualifies for CFP credit.