Estate & Fiduciary Tax Returns: A Practical Workshop Webinar

To provide tax professionals with a practical understanding of fiduciary income and estate tax laws and the skills necessary to accurately prepare Forms 1041 and 706, apply available elections, calculate fiduciary taxable income, and address common issues encountered in estate and trust administration.

• Fiduciary Income Tax
  – Types of taxable entities that file Form 1041
  – Filing requirements for estates and trusts
  – Simple, complex, and grantor trusts
  – Taxable years and Section 645 elections
  – Calculation of fiduciary taxable income
  – Income in Respect of a Decedent (IRD)
  – Administrative expenses and charitable deductions
  – Interest expense and passive activity rules
  – Income distributions and distributable net income (DNI)
  – Beneficiary reporting and Schedule K-1 preparation
  – Capital gains and losses
  – The 65-day election
  – Separate share rules
  – Estate and trust income tax calculations and AMT
  – Estimated tax requirements
• Special Considerations
  – Throwback rule
  – Termination of estates and trusts
  – Excess deductions and loss carryovers
• Federal Estate Tax
  – Form 706 filing requirements
  – Estate tax computation
  – Applicable credit and portability
  – Valuation of estate assets
  – Alternate and special valuation methods
  – Gathering information and documentation needed to prepare Form 706
  – Preparation of Form 706 Schedules A through O
  – Estate administration deductions
  – Marital and charitable deductions
  – Practical estate tax preparation examples

Michael F. Breslin, JD, LLM

To provide tax professionals with a practical understanding of fiduciary income and estate tax laws and the skills necessary to accurately prepare Forms 1041 and 706, apply available elections, calculate fiduciary taxable income, and address common issues encountered in estate and trust administration.

DETAILED LEARNING OBJECTIVES

• Distinguish among estates, simple trusts, complex trusts, and grantor trusts

• Identify which estates and trusts must file Form 1041

• Determine the appropriate taxable year for an estate or trust

• Explain the requirements and benefits of an IRC Section 645 election

• Identify the income items included in an estate’s or trust’s gross income

• Determine the basis and holding period of property acquired from a decedent

• Apply passive activity loss rules to estates and trusts

• Identify income in respect of a decedent and its tax treatment

• Determine the deductibility of fiduciary administrative expenses

• Distinguish between deductions claimed on Form 1041 and Form 706

• Calculate the adjusted gross income of an estate or trust

• Calculate distributable net income for an estate or trust

• Determine income required to be distributed currently

• Apply the income distribution deduction limitation

• Determine the character and timing of income reported by beneficiaries

• Apply the rules governing capital gains and losses of estates and trusts

• Explain and apply the 65-day distribution election

• Apply the separate share rule when calculating distributable net income

• Identify the estimated tax requirements applicable to estates and trusts

• Explain the purpose of Forms 1041-T and Schedule K-1

• Identify the tax consequences of terminating an estate or trust

• Determine when Form 706 must be filed and when the return is due

• Explain the applicable credit, exemption equivalent, and portability rules

• Apply the date-of-death and alternative valuation rules to estate assets

• Classify estate assets, transfers, and deductions on the appropriate Form 706 schedules

• Fiduciary Income Tax
  – Types of taxable entities that file Form 1041
  – Filing requirements for estates and trusts
  – Simple, complex, and grantor trusts
  – Taxable years and Section 645 elections
  – Calculation of fiduciary taxable income
  – Income in Respect of a Decedent (IRD)
  – Administrative expenses and charitable deductions
  – Interest expense and passive activity rules
  – Income distributions and distributable net income (DNI)
  – Beneficiary reporting and Schedule K-1 preparation
  – Capital gains and losses
  – The 65-day election
  – Separate share rules
  – Estate and trust income tax calculations and AMT
  – Estimated tax requirements
• Special Considerations
  – Throwback rule
  – Termination of estates and trusts
  – Excess deductions and loss carryovers
• Federal Estate Tax
  – Form 706 filing requirements
  – Estate tax computation
  – Applicable credit and portability
  – Valuation of estate assets
  – Alternate and special valuation methods
  – Gathering information and documentation needed to prepare Form 706
  – Preparation of Form 706 Schedules A through O
  – Estate administration deductions
  – Marital and charitable deductions
  – Practical estate tax preparation examples

Michael F. Breslin, JD, LLM