Objective
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- Be aware of fiduciary accounting principles 

- Calculate Distributable Net Income and the income distribution deduction 

- Prepare Form 1041 and Schedule K-1 

Highlights
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- Classifying receipts between “income” and “corpus” under the Uniform Principal and Income Act 

- Calculation of DNI utilizing three different methods, a “forms” method (Schedule B), a “code” method, and a “shortcut” method, utilizing a worksheet of common income and expenses 

- Proper W-2 preparation and procedures in the year of death 

- Taxpayer passes before taking a required minimum distribution; what must be done? 

- Forgetful fiduciaries of simple trusts 

- Fluctuating trusts – Simple one year, complex the next 

- Dividing income in the year of death 

- Overview of Subchapter J 

- Form preparation issues – Filing requirements and line-by-line explanations of Form 1041 

- Taxable income of estates and trusts, excess business loss limitations, and expense allocation issues 

- Specific deductions and miscellaneous itemized deductions 

- Income in respect of a decedent 

- The income distribution deduction calculation 

- Relation of principal and income law to DNI 

- Understanding how to handle capital gains and losses 

- Allocating tax items to beneficiaries: another K-1 

- Other considerations: excess deductions on termination 

- Comprehensive DNI case study, with principal (cost and FMV) and income reconciliation 

- Comprehensive trust and estate case studies, with filled-in forms 

Designed For
CPAs whose practice includes the preparation of fiduciary income tax returnsPrerequisite
Experience with the preparation of income tax returnsAdvanced Preparation
None