Trust returns can feel unfamiliar, even when the fact pattern is straightforward. In this session, we’ll cover the trust basics that ax professionals need to handle common client situations with confidence. We’ll review trust types, who is responsible for reporting, when a trust must file and how to determine what income is taxed to the trust versus the beneficiaries. We’ll also walk through core concepts that drive reporting and planning, such as distributable net income (DNI), the income distribution deduction (IDD) and common trust transactions that affect Form 1041, U.S. Income Tax Return for Estates and Trusts.
Objectives
Upon completion of this session, you will be able to:
Distinguish common trust types
Identify key parties to a trust
Determine when a trust is required to file Form 1041
Apply core trust concepts, including DNI and the IDD, to determine how income is taxed and reported
Recognize common trust reporting issues, including distributions, capital gains treatment, and allocation between income and principal
