Surgent's Fiduciary Income Tax Returns - Form 1041 Workshop with Filled-in Forms

Overview

This course is designed as a comprehensive guide to the core concepts of trust and estate income tax preparation. The course explains the common terminology and complicated income tax rules of estates and trusts, fiduciary accounting, and an introduction to or refresher on preparing Form 1041. This practical, over 300-page manual is an excellent reference source for your practice, which begins with quite simple cases. Building upon that base throughout the manual, the course ends with two complicated preparation cases, one trust and one estate, each with filled-in forms.

Highlights

Classifying receipts between “income” and “corpus” under the Uniform Principal and Income Act
Calculation of DNI utilizing three different methods, a “forms” method (Schedule B), a “code” method, and a “shortcut” method, utilizing a worksheet of common income and expenses
Proper W-2 preparation and procedures in the year of death
Taxpayer passes before taking a required minimum distribution; what must be done?
Forgetful fiduciaries of simple trusts
Fluctuating trusts – Simple one year, complex the next
Dividing income in the year of death
Overview of Subchapter J
Form preparation issues – Filing requirements and line-by-line explanations of Form 1041
Taxable income of estates and trusts and expense allocation issues
Specific deductions and miscellaneous itemized deductions
Income in respect of a decedent
The income distribution deduction calculation
Relation of principal and income law to DNI
Understanding how to handle capital gains and losses
Allocating tax items to beneficiaries: another K-1
Other considerations: excess deductions on termination
Effects of the CARES and Tax Relief Acts on trusts: §461(l) Excess Business Loss Limitation, NOL, §163(j) modifications, new employer credits
Comprehensive DNI case study, with principal (cost and FMV) and income reconciliation
Comprehensive trust and estate case studies, with filled-in forms

Prerequisites

Experience with the preparation of income tax returns

Designed For

Accounting and Financial Professionals whose practice includes the preparation of fiduciary income tax returns