Form 1041 Reporting for Partnership Income and Sales (Completed)

Date: Thursday, May 23, 2024
Instructor: Klaralee R. Charlton
Begin Time:  11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Estates and trusts frequently own interests in partnerships and other flow through entities such as S corporations. Reporting receipts from these entities for fiduciary accounting purposes frequently creates mismatches on the fiduciary income tax return. Further complications can arise on the sale of partnership interests—particularly when those interests have received a basis adjustment at the death of the original owner. In this course, we will evaluate both the fiduciary accounting and fiduciary income tax complexities associated with owning partnership interests as well as the nuances of selling these interests and flowing income through to beneficiaries.

Topics Covered

  • Review of the fiduciary accounting rules for allocation of receipts from pass thru entities
  • Comparison of the treatment of receipts from a pass-through entity compared to the fiduciary income tax reporting procedures
  • Explanation of the timing issues related to the distribution of assets in comparison to the pass through of taxable income from a partnership
  • Summary of best practices for timing sale transactions to prevent unnecessary tax burdens

Learning Objectives

  • Understand how to categorize receipts from partnerships on the annual fiduciary accounting in comparison to the reporting of items of income on the fiduciary income tax return
  • Analyze beneficial timing for transactions to ensure phantom income is not needlessly trapped at the trust or estate level
  • Identify how to adjust the cost basis of a partnership interest or its assets at the death of the interest owner
  • Recommend ideal timing strategies for transactions in order to minimize income tax to both the entity and the beneficiary


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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