Trusts are old entities and go as far back to the Crusades and a time when we were an agrarian society, and the only asset of any value was the land and what was produced on the land. Therefore, dividing the benefit in a trust between income and principal was logical and worked efficiently for a very long time. However, times have significantly changed, and trusts are often invested in assets that don’t involve land and these assets also have great value. Often the value lies in their growth and not the income they produce. New rules have developed in the fiduciary accounting area and they provide elections that often produce favorable results to the trust and the beneficiaries. This section of the 1041 Workshop will explore those elections.
• Review Fiduciary Accounting Elections
• Analyze Unitrusts & Trustee’s Power to Adjust
• Review Accounting Rules for Distributions from Entities
• Determine when Capital Gains are Included in DNI
• Basic Fiduciary Accounting Problem
• Problem Example with Reserve for Depreciation
• Problem Example with Separate Accounting for Business Assets
• Problem Example with Separate Accounting for Business Assets with Reserve
• Problem Examples where Capital Gains are/are not Included in DNI
Tax practitioners, accountants and financial professionals.
Form 1041 Advanced Workshop Part 1.
This webinar is produced by AICPA. You will receive your login link/instructions and Certificate of Attendance directly from this third-party vendor. It is important that you review your COCPA confirmation for details on receiving your login instructions and COA from said vendor.