Form 1041 - Tax Compliance, Review and Planning - Beginners

Author: Michael Miranda

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Over the coming months you will be preparing many Form 1041 returns and even the experienced practitioners will benefit from a review while newer professionals will want to establish a good foundation of fiduciary tax principles. Over the years clients have learned the importance of using a trust to meet their financial, tax and estate planning goals. Trusts often function in a variety of ways to meet these planning goals. Join us as we get you up to speed on all the vital fiduciary income tax issues. The course will cover both the Form 1041 and theory and tax law behind these concepts.

Publication Date: January 2025

Designed For
All tax professionals who desire a better understanding of the fiduciary tax including the Form 1041 return reporting and be able to understand the flow of income from a trust to a beneficiary.

Topics Covered

• Types of Trusts for income tax purposes including – simple, complex, grantor, charitable and fiscal year elections
• Taxable income and fiduciary accounting income
• Distributable net income (DNI)
• IRC §663(b) … 65-Day rule
• The “Tier” Rules for DNI
• The Separate Share Rule for DNI
• 2023 Form 1041 return - Estate of Evergood - Example
• Passive activity rules for trusts and estates
• Net Investment Income Tax (NIIT) and the tricks and traps
• Postmortem planning - Use of an Estate's Fiscal Year End

Learning Objectives

• Identify the types of trusts for income tax purposes
• Identify the types of trusts for special tax or estate planning purposes
• Identify the difference between taxable income and fiduciary accounting income
• Identify the role of “Distributable Net Income” (DNI) for income tax purposes
• Identify the impact of the Separate Share Rule for DNI
• Identify the tax planning implications of the IRC §663(b) … 65-Day rule
• Identify how to report the tax related items of a grantor trust

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None