Form 1041: Income Taxation of Estates and Trusts

Protect your clients' assets and shield their estates from increased taxation brought about by the changing tax code. Understand the tax obligations of trusts and estates and how these obligations affect beneficiaries. This course provides exercises and examples that reflect the calculation and allocation of taxable income and its presentation on the appropriate forms. You will also learn how to prepare Federal Form 1041 and the accompanying schedules.

Learning Objectives:
When you complete this course you will be able to:

• Apply the concepts of federal income taxation of estates and trusts.
• Calculate the gross income of trusts and estates.
• Describe what deductions and credits are allowed for estates and trusts.
• Define distributable net income and understand its significance.

Topics Discussed:
How are trusts and estates taxed under the internal revenue code?

• What is a trust? What is a "simple trust?" What is a "complex trust?"
• How is the "income" of a trust or estate defined for tax purposes?
• What are the ordinary deductions and credits allowed?
• How is the "deduction for distributions" to beneficiaries determined?
• How are trust and estate beneficiaries taxed?
• What is a "grantor trust" and how is it taxed?
• How to prepare Form 1041