Surgent's Succesfully Completing an Income Tax Return for a Trust or Estate - Form 1041

Prerequisites

Intermediate understanding of federal income tax

Objectives

• Understand how to file a basic income tax return for an estate or trust – form 1041

Highlights

• Passive activity rules for trusts including the NIIT
• The different types of trusts for income tax purposes (e.g. simple, complex, grantor, charitable)
• The critical categorization of income (taxable income vs. fiduciary accounting income)
• Distributable net income (DNI) and how it works
• The "Tier" Rules
• The Separate Share Rule
• IRC 663(b) "65-Day" Rule
• IRC §691(c) Deduction
• QSST and EBST elections
• How to treat excess deductions on termination
• Grantor trust rules and how they impact planning and return preparation
• The income tax side of Domestic Asset Protection Trusts