Form 1041: Basic Trust & Estate Income Tax Preparation (Part 1) (Currently Unavailable)

Author: Klaralee R. Charlton

This course is part 1 of a two-part course on Form 1041 and the concepts involved in the federal taxation of trust and estates. Instructor Klaralee Charlton will help you understand the basic concepts involved in how trusts and estates are taxed. She will show you where the tax questions move from that of the decedent into that of the estate and any related trusts. With this course, you’ll learn the concepts and steps you’ll need to understand to complete Form 1041 and advise clients on the necessary steps to properly report the income of an estate or trust.

Publication Date: October 2021

Designed For
This course is designed for all CPAs, EAs, estate planners and financial planners who advise clients on tax issues related to estates and trusts.

Topics Covered

• What is Form 1041?
• When to Use a Form 1041
• Types of Trusts
• Tax Year Options & Due Dates
• Combining the Taxable Trust and Estate
• Types of Income
• Types of Deductions
• Income Distribution Deduction
• Beneficiary Schedule K-1
• IRC 1014 Basis Adjustment

Learning Objectives

• Recognize what is Form 1041
• Identify when to use Form 1041
• Describe the types of trusts
• Recognize tax year options and due dates
• Identify how to combine the taxable trust and estaate
• Describe types of income and deductions
• Recognize income distribution deduction
• Recognize beneficiary of Schedule K-1
• Recognize which Schedule of Form 1041 charitable deductions should be included on
• Describe a living trust
• Differentiate which IRS form should be completed to treat a qualified revocable trust as part of an estate
• Identify the time limit from the date of death to make the 645 election if no Form 706 is filed
• Recognize which type of income should be included on Schedule C of Form 1040
• Identify which deduction is included on Line 20 of Form 1041
• Recognize what maximum amount the TCJA revised IRC 164 and limits certain taxes
• Identify the personal residence exclusion allowed for a trust or estate
• Recognize a deduction subject to the 2% floor which is not special to a trust or estate
• Identify the personal exemption amount for a complex trust
• Identify the personal residence exclusion allowed for a trust or estate

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (6 hours)

Program Prerequisites
None

Advance Preparation
None