FIDUCIARY INCOME TAXATION: The Not-So-Basic Basics Audio Download

    FIDUCIARY INCOME TAXATION: The Not-So-Basic Basics Audio Download

    FIDUCIARY INCOME TAXATION: The Not-So-Basic Basics Audio Download

    For many estate planners, the complexities of the fiduciary income tax have not been terribly troubling, as Form 1041 audits have historically been few and far between. Yet with the federal applicable exclusion amount now at $5 million, the number of estates subject to federal estate tax will decrease substantially. With the ...
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    For many estate planners, the complexities of the fiduciary income tax have not been terribly troubling, as Form 1041 audits have historically been few and far between. Yet with the federal applicable exclusion amount now at $5 million, the number of estates subject to federal estate tax will decrease substantially. With the potential decrease in resources needed to audit Forms 706 (assuming the current regime stays intact beyond 2012) it seems likely that the Internal Revenue Service may shift its focus to a closer review of fiduciary income tax returns. Should this occur, the need for a deeper familiarity with the fiduciary income tax rules of Subchapter J of the Internal Revenue Code will increase. At the broadest level, Subchapter J provides for the allocation of income and deductions between the trust and the beneficiaries. In this sense, the trust can be both a taxpayer and a conduit through which income and deductions flow out to the beneficiaries. This allocation and the role of the trustee in this allocation are conditioned by two fundamental concepts -- fiduciary accounting income ("FAI") and distributable net income ("DNI") -- that ultimately determine the tax accounting income ("TAI") for the trust and the beneficiaries. As most practitioners are aware, these three concepts are fundamental to the mechanics of Subchapter J. However, they are far more complex than some may recognize and often manifest themselves on the Form 1041. This program will offer a look at the "not-so-basic" basics. Our Experts:Scott Andrew Bowman, Proskauer, Boca Raton, FLSasha A. Klein, Bessemer Trust, Palm Beach, FL

    Product Details

    Sponsors

    Section of Real Property, Trust and Estate Law

    Product Code

    5430603AUD

    Publication Date

    6/1/2012 12:00:00 AM

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