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 builds upon our intermediate-level course to concentrate on the most difficult issues in practice. This is an essential offering for the practitioner with high-powered clients.

Major Topics:

  • Case studies with completely filled-in forms tracking the flow of tax items and worksheets
  • Taking advantage of separate shares and the merged estate
  • Merging estates 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 ordering rules
  • Depreciation problems & 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)

Learning Objectives:

  • 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 grantor and non-grantor trusts

Designed For: CPAs who are heavily involved in Form 1041 preparation
Level of Knowledge: Advanced
Prerequisite: Previous coursework in Form 1041 preparation or equivalent knowledge and experience
Advanced Preparation: None
Credits: 8
Field of Study: Taxes(8)
CFP Credit: Yes

Live Seminar Course Schedule