Forms 1041 and 706 are possibly the most difficult and misunderstood tax returns that tax professionals prepare. In this problem-solving self-study webinar based on true-to-life scenarios, you will:
- Discover the best techniques for preparing Forms 1041 and 706
- Learn methods for gathering information from trustees and fiduciaries
- Understand the impact of various election options
- Understand the interaction between the two returns
To provide preparers with a working knowledge of applicable tax laws and the hands-on ability to prepare complete and accurate fiduciary and estate tax returns. This practical self-study webinar will also equip you with effective post-mortem tax planning techniques.
- Filing requirements for estates and trusts
- Simple and complex trusts
- Choice of annual accounting period
- Calculation of taxable income
- Capital gains
- Tax-effective distributions to beneficiaries
- Grantor trusts
- Income in respect of a decedent
- Estimated tax rules
- Gross estate calculation
- Unified credit after the Tax Cuts and Jobs Act of 2017
- Estate elections
- Valuation issues
• Recognize the filing threshold for the estate tax return
• Recognize the due date for the filing of the estate tax return
• Recognize the reason why a decedent’s lifetime adjusted taxable gifts are included in the estate tax calculation
• Identify the date of the “alternative valuation date”
• Identify the reason behind the use of the alternative valuation date in valuing the gross estate
• Identify when the alternative valuation election is available
• Identify when the special use valuation rules can be applied
• Identify how real estate is generally valued on the estate tax return
• Identify the rules for valuing a closely-held stock
• Recognize when the value of a life insurance policy on a decedent’s life is includible in the decedent’s gross estate
• Recognize the proper placement of a decedent’s assets on the Form 706 Schedules
• Recognize how to report the value of joint interests on a decedent’s estate tax return
• Recognize the gross estate inclusion rules of Sections 2035 through 2038
• Identify which types of expenses are properly reported as debts of the decedent on the estate tax return
• Identify the available tax year for an estate
• Identify the available tax year for a trust
• Identify the characteristics of an IRC Section 645
• Identify the filing threshold for Form 1041
• Recognize the applicability of the passive activity rules to estates and trusts
• Recognize the grace period in which an estate can use a decedent’s prior passive activity losses
• Recognize income in respect of a decedent
• Recognize how income in respect of a decedent is reported
• Recognize the degree to which certain income and deductions available to individuals are available to estates and trusts
• Recognize the percentage threshold required of a decedent’s closely held business valuation to gross estate valuation to defer estate taxes under Section 6166
• Identify how to determine the deductibility of indirect expenses by an estate or trust when the estate or trust earns both taxable and nontaxable income
• Identify the extent to which a simple or complex trust can deduct charitable contributions
• dentify the circumstances under which estate administrative expenses can be deducted
• Identify under which circumstances double deductions are allowed on a fiduciary tax return
• Identify which expenses can only be deducted on the decedent’s final Form 1040
• Identify administrative expenses of an estate or trust not subject to the 2% AGI threshold
• Recognize the maximum amount a trust or estate can claim as a distribution deduction
• Recognize an estate’s or trust’s taxable income
• Recognize an estate’s or trust’s DNI
• Recognize the ramifications of an estate’s or trust’s DNI
• Recognize what determines a trust’s or estate’s income required to be distributed currently
• Recognize how an estate’s or trust’s capital gains are taxed