1041 Preparation: Line by Line Explanation (Currently Unavailable)

Author: Arthur Joseph Werner

Learn to prepare U.S. Income Tax Return for Estates and Trusts (Form 1041) including how to answer the "nine questions." This course is the third of three parts of the 1041 Series covering issues involved in preparing the U.S. Income Tax Return for Estates and Trusts (Form 1041).

Publication Date: January 2015

Designed For
CPAs, EAs and attorneys who need to understand Form 1041

Topics Covered

• The "Nine Questions" and how to answer them
• Income lines
• Deduction lines
• Schedule A -- charitable deductions
• Schedule B -- income distribution deduction
• Other schedules
• Tax computation
• Schedule K and Schedule K-1

Learning Objectives

• Recognize how to properly file Form 1041 and the additional filing requirements of a grantor trust
• Identify which Optional Method No.2 should be applied when filing for a grantor trust
• Recognize and apply how to file a Form 1041 for a client who has an interest in a foreign bank account
• Identify circumstances where you should take advantage of the 65-day rule in managing a trust
• Evaluate and implement proper responses to the "Nine Questions"
• Evaluate and properly apply Form 1041 itemized deductions
• Recognize proper line items to file on Form 1041 for client's estates
• Calculate distributable net income (DNI) of a trust
• Identify proper trust adjustments for taxable income
• Implement advantages when making a §645 election
• Identify proper beneficiaries when filing Form 1041
• Recognize proper grantor trust filing rules
• Identify how to properly report estate income on the form 1041

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (3 hours)

Program Prerequisites
None

Advance Preparation
None