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
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.