1041 Preparation: Understanding the Issues (Currently Unavailable)

Author: Arthur Joseph Werner

Get an overview of the 1041 process, the three questions regarding trusts and Grantor Trust issues. This course is the first 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 preparation

Topics Covered

• Overview of the 1041 process
• Specific issues regarding a decedent's estate
• The "three questions" regarding trusts
• Grantor Trust issues

Learning Objectives

• Identify preparation of U.S. Income Tax Return for Estates and Trusts (Form 1041)
• Recognize the basics of Subchapter J of the Internal Revenue Code
• Recognize which sections in the Internal Revenue Code specifically defines gross estate as all probate assets
• Identify the main reason an estate goes through probate
• Recognize who would be considered the equitable owner of a trust
• Differentiate which assets should be distributed when filing a Form 1041 for a complex trust
• Identify which income should be included when filing a Form 1041
• Recognize which deductions should be utilized when filing a Form 1041
• Identify the definition of an estate
• Recognize who a CPA is working for as the probate estate of a deceased client
• Identify the circumstances a beneficiary of a trust receiving distributions from trust income should be defined by under a lawsuit
• Differentiate beneficiary successions and under which circumstances each beneficiary would receive income from a trust
• Evaluate which trusts would be disregarded from a Form 1041 under tax purposes
• Determine what constitutes trust income for tax purposes when filing Form 1041
• Identify which exemptions of a trust will be used when filing Form 1041 on behalf of the trustee in a simple trust
• Recognize which grantor trusts fall under IRC§§671-679
• Determine the filing date to file Form 1041 under the 65-day rule
• Identify which of the following §645 elections apply

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None