CPAs, lawyers, and trust experts will be preparing and reviewing many 1041s this year, and it is important to establish a solid fiduciary tax foundation. It is critical to understand who pays taxes for ongoing trustees and who pays income taxes during an estate administration. Even if one does not prepare returns, an understanding of the flow of income from a trust to the beneficiary is critical for both lawyers and trust officers.

In this exclusive webinar, Bob Keebler will present vital fiduciary income tax issues and planning points needed to master clients' 1041 issues. This class will cover both the 1041 form and the theory/statutes behind the concepts. Specific topics Bob will cover include the following:

• The types of trusts for income tax purposes: simple, complex, grantor, charitable, and fiscal year elections


• Taxable income versus fiduciary accounting income


• Distributable net income (DNI), including IRAs


• IRC 663(b) “65-day rule”


• The tier rules for DNI


• The separate share rule for DNI


• Passive activity rules for trusts and estates


• 3.8% net investment income tax and the traps


• IRC §691(c) deduction including large IRAs


• Deductions on termination


• QSST and EBST elections


• Difficult 642(c) charitable issues


• Grantor trust reporting


• DAPT reporting


• Kenan losses and the 267(b)(13) related party rules

• Arrange and list the types of trusts for income tax purposes (simple, complex, grantor, charitable and fiscal year elections)


• Identify and master all the vital fiduciary income tax issues, traps, and planning points necessary for clients who have 1041 issues


• Recognize the flow of income from trust to beneficiary