Fiduciary Accounting & Tax Planning for Estates & Trusts

Overview

This course will review the fundamentals of fiduciary accounting and provide a reporting guide for determining whether receipts and expenditures are assigned to income or principal/corpus. Critical issues, rules, and special opportunities when preparing your clients’ Form 1041 U.S. Income Tax Return for Estates and Trusts will be examined, including what is considered taxable income and allowable deductions. Planning and potential pitfalls will also be explored.

Highlights

• 10 Principles of Tax Accounting for Trust Income
• Entity accounting income and Form 1041
• Uniform Principal and Income Act
• Discretionary Power to Adjust
• Allocations between principal and income
• Trust accounting issues
• Current rates and brackets; Calculating a trust's AGI
• Filing requirements, deadlines and penalties
• 3.8% Medicare surtax on net investment income (NII)
• Simple vs. complex trusts
• Grantor Trusts: Four options to report activity
• Section 643 (g) Election
• Taxable income of trusts, estate and beneficiaries
• Deductions and Distributions

Prerequisites

Basic working knowledge of estate and trust tax rules.

Designed For

Practitioners and members in industry seeking to gain a better understanding of fiduciary accounting and tax rules of estate and trusts.

Objectives

• Apply a working knowledge of the financial accounting rules for estates and trusts
• Identify current tax guidelines when preparing a client's estates and trusts return
• Identify planning and potential pitfalls.

Preparation

None

Notice

• This event is paperless unless you elect to pay for printed materials. • All materials will be available to download in advance and participants will receive an email two days prior to the course date. Materials will also be posted in the “My CPE” section of the NESCPA website. • Parking and lunch are provided on-site