The Intersection of Fiduciary Accounting and Taxation
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs |
Understanding how distributions from a trust may impact the taxable income of a beneficiary is important for any fiduciary or adviser. In this course participants will briefly review the fiduciary accounting process and then learn how income and principal allocations affect the division of the income tax burden between the trust and its beneficiaries.
Publication Date: June 2024
Topics Covered
- What is Fiduciary Accounting?
- Importance of Fiduciary Accounting
- Fiduciary Accounting Process
- Planning and Examples
Learning Objectives
- Recognize when to prepare a fiduciary accounting and how to identify the governing rules for the accounting
- Recognize how the accounting impacts the income distribution deduction when preparing the fiduciary income tax return
- Identify and categorize the receipts and disbursements between income and principal
- Identify administration transactions to mitigate income tax liability for the trust and the beneficiaries
- Identify the second step in the adviser’s responsibilities
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of Fiduciary Accounting or Fiduciary Income Tax
Advance Preparation
None
