Form 1041 Basics (Currently Unavailable)

Author: Klaralee R. Charlton

Learn the basic concepts related to filing the Form 1041 fiduciary income tax return for trusts and estates including identifying sources of income, eligible deductions, and passing income out to beneficiaries. This course will highlight unique issues related to Form 1041 and useful techniques practitioners can use to reduce overall tax liability.

Publication Date: September 2022

Designed For
Attorneys, CPAs, and Enrolled Agents

Topics Covered

• What is Form 1041?
• Filing Requirements
• Choice of Filing Period
• Common Types of Income
• Unique Trust and Estate Deductions
• I.R.C. § 645 & 663(b) Elections
• I.R.C. § 1014 Basis Adjustment Reporting
• Allocation of Income Between Entity and Beneficiaries

Learning Objectives

• Identify how to advise clients on the available options for filing Form 1041 for a trust or estate to achieve tax saving goals
• Recognize how to analyze income and deductions and allocate each to the appropriate taxpayer and tax period
• Evaluate the impact of making elections and explain the benefits of these elections
• Identify the importance of properly allocating income between the entity and the beneficiaries
• Identify a type of trust that is required to distribute all income annually
• Recognize the type of law that governs who receives the assets of the estate when dealing with an intestate
• Identify the top trust income tax rate
• Identify the due date for filing Form 1041 for a calendar year trust/estate
• Identify the personal exemption amount that can be deducted for a Simple Trust

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None