This session will review the tax and administration issues of a trust owning an interest in a partnership, S corporation or IRA. Among the issues reviewed will be what trusts are eligible S corporation shareholders, how the S corporation or partnership taxable income is reported and how the ownership of such an interest affects trust accounting income and distributable net income, as well as a discussion of the treatment of passive activity losses arising from the ownership of such interests. The session will also cover the tax and administration issues of a trust owning an IRA including qualification of such an interest for the estate tax marital deduction, how IRA distributions are allocated between income and principal and how distributions from an IRA affect the calculation of DNI.
Learn the how distributions from partnerships, S corporations and IRA affect the calculation of TAI and DNI and taxable income
Learn how distributions from partnerships and S corporations can result in "phantom" income to an estate or trust.