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Form 1041 Advanced Workshop-Part 2 of 4 WEBCAST

Monday, November 7 10:00am - 12:00pm PST

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Your Desk

2.0 Credits

Member Price $89.00

Non-Member Price $119.00

Overview

One of the basic rules in fiduciary taxation is that the person or entity that receives the taxable income from the trust or estate is taxed on that income. The calculation of Distributable Net Income (DNI) and the Distribution Deduction determine the allocation of the tax burden between the fiduciary entity and the beneficiary. Therefore, when distributions are made that “carry out” DNI, the fiduciary entity operates as a conduit where the beneficiaries are taxed on the amounts reflected on the Schedule K-1. The fiduciary entity receives a corresponding distribution deduction. When taxable income is accumulated by the entity, the fiduciary pays the tax. We will explore the various distributions made to beneficiaries and their impact on the entity’s taxation.

Highlights

Calculating DNI and the distribution deduction. Determining types of distributions and whether a distribution “carries out” DNI. In-Kind distributions and the impact on the distribution deduction. Depreciation and the distribution of in-kind property. Distributions that result in “Kenan gain”. Funding a pecuniary bequest with depreciated property. IRC Sec. 643(e). The separate share rule. Understanding IRC Sec. 199A as it pertains to fiduciary entities.

Prerequisites

Strong experience with Form 1041.

Designed For

Tax practitioners, accountants and financial professionals.

Objectives

Calculating DNI and the distribution deduction. Determining types of distributions and whether a distribution “carries out” DNI. In-Kind distributions and the impact on the distribution deduction. Depreciation and the distribution of In-Kind property. Distributions that result in “Kenan gain.” Funding a pecuniary bequest with depreciated property. IRC Sec. 643(e). The separate share rule. Understanding IRC Sec. 199A as it pertains to fiduciary entities.

Preparation

None.

Notice

None.

Leader(s):

Leader Bios

Jacqueline Patterson

Jacqueline A. Patterson, JD, MBT, CPA, is a partner in the Los Angeles based firm of Haney, Buchanan & Patterson, LLP. She is a member of the California State, Los Angeles, and Beverly Hills Bar Associations. Ms. Patterson has written and facilitated full day tax seminars in the areas of corporate taxation, the income taxation of trusts and estates, tax research and planning, real estate transactions, charitable trusts and received the Foundation’s Meritorious Service Award in 2000.

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Non-Member Price $119.00

Member Price $89.00