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
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.