Preparing The 1041 Return

Publisher
WiseGuides, Inc.
2796 Greenspire Ln
Akron, Oh 44333
Copyright © 2010

Field of Study: Taxes
Level: Basic
Recommended CPE Credit 4 hours
Prerequisites: None
Advanced Preparation: None
Type of Delivery: Self-Study
Expiration: Course expires 1 year after purchase
Course Update: April, 2010
Accreditation: NASBA, IRS, CTEC, OTPB
Guarantee/Complaint Resolution

Course Outline


Lesson 1 - Income Tax Return of an Estate
Learning Objectives 1
Estate's first tax year
Filing requirements
Personal representative/duties
Schedule K-1 (Form 1041)
Beneficiaries
Information returns
Two or more personal representatives


Lesson 2 - Income To Include
Learning Objectives 2
Income in respect of the decedent
Gain or loss from sale of property
Character of asset
Basis of asset
Installment obligations
Gain from transfer of property to political organization
Gain or loss on distributions in kind
Special-use valuation


Lesson 3 - Exemptions and Deductions
Learning Objectives 3
Exemption deduction
Contributions
Losses
Administration expenses
Depreciation and depletion
Distributions deduction
Separate Shares Rule
Other Deductions
Property Distributed in Kind
Funeral and medical expenses


Lesson 4 - Credits, Tax, and Payments
Learning Objectives 4
Credits
Tax
Payments


Lesson 5 - Filing Matters
Learning Objectives 5
Name, address, and signature
When/where to file
Extension of time to file


Lesson 6 - Distributions to Beneficiaries
Learning Objectives 6
Income required to be distributed currently
Other amounts distributed
Discharge of a legal obligation
Character of distributions


Lesson 7 - How and When To Report/Rules
Learning Objectives 7
How to report estate income
When to report estate income
Special rules for distributions


Lesson 8 - Termination of Estate/Form 706
Learning Objectives 8
Period of administration
Transfer of unused deductions to beneficiaries
Successor Beneficiary
Transfer of credit for estimated tax payments
Form 706
Comprehensive example

Course Objectives

Lesson - 1

After completing Lesson 1, you will be able to:
  • Identify the filing requirements for filing Form 1041
  • Identify the difference between a domiciliary representative and an ancillary representative

Lesson - 2

After completing Lesson 2, you will be able to:
  • Identify where to report income in respect of the decedent
  • Identify the basis of property purchased by the estate after the decedent's death
  • Figure the amount of income to include on Form 1041
  • Identify how gain from the sale of depreciable property is treated
  • Determine the value of the estate using the alternate valuation method

Lesson - 3

After completing Lesson 3, you will be able to:
  • Determine the estate's exemption amount
  • Figure a beneficiary's allowable depreciation deduction regarding business property
  • Identify the requirements regarding an estate's charitable contributions

Lesson - 4

After completing Lesson 4, you will be able to:
  • Identify the credits allowable for an estate income tax return
  • Apply the general rules for making estimated tax payments for an estate

Lesson - 5

After completing Lesson 5, you will be able to:
  • Identify the form and the date an estate tax return is due for a fiscal year filer

Lesson - 6

After completing Lesson 6, you will be able to:
  • Figure the amount of the estate's distributable net income the beneficiary must include in income

Lesson - 7

After completing Lesson 7, you will be able to:
  • Specify the estate income that must be reported and how to report it

Lesson - 8

After completing Lesson 8, you will be able to:
  • Identify when to timely file and pay estate taxes
  • Identify "reasonable cause" reasons for being granted additional time to pay the estate tax (Form 706)