Section 67(g) and Form 1041 Deduction Rules | CPE Course

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Thursday, June 4, 2020
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

CPE

ALL

This course will provide fiduciary tax advisers and compliance professionals with a practical guide to the deduction structure for Form 1041 under the latest tax reform. The panel will outline the specific changes that tax reform makes to fiduciary deductions, detail the impact of income items taxable at the trust or estate level, and discuss the specific changes in tax allocation between entity and beneficiaries after the law change.

Faculty

Jeremiah W. Doyle

Senior Vice President

Bank of New York Mellon, Corp

Mr. Doyle provides clients with integrated wealth management advice on how to hold, manage and transfer their wealth in a tax efficient manner. He is the editor and co-author of Preparing Fiduciary Income Tax Returns, a contributing author of Preparing Estate Tax Returns and Understanding and Using Trusts and a contributing author of Drafting Irrevocable Trusts in Massachusetts. He is a lecturer in law in the Graduate Tax Program at Boston University School of Law.

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Jacqueline Patterson

Partner

Buchanan & Patterson, LLP

Ms. Patterson specializes in tax, estate and financial transactions, with an emphasis on asset protection and succession planning. She advises grantors, fiduciaries and beneficiaries in matters involving the transfer, administration, investment and management of assets and is a consultant to attorneys and CPAs in fiduciary accounting, taxation and litigation. She has held Adjunct Faculty positions in the graduate tax programs at both USC and Golden Gate University.

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Description

Tax reform changes the tax consequences for trusts and estates and may increase taxes for many trusts and beneficiaries on trust income. The law eliminates some common deductions enjoyed by individual taxpayers and fiduciary entities. For individual taxpayers, lower marginal rates and an increased standard deduction offset the loss of these deductions.

A significant change that may substantively affect trusts is the enactment of Section 67(g), which eliminates all 2 percent miscellaneous itemized deductions (MID) for tax years 2018-2025. IRS Notice 2018-61 clarifies that fiduciary fees and income tax preparation costs for trusts are deductible. However, IRC 67(e) excludes from the 2 percent MID floor any deductions of specific expenses that would have been incurred if the property were not held in a trust or estate.

Likewise, the deduction cap on state and local property taxes may hit trusts and estates hard. However, this deduction may also be subject to a carve-out. The law provides an exception to the cap for personal and real property tax expenses incurred for the production of income, as described in Section 212.

Listen as our panel provides tax advisers with a solid grasp of the changes and uncertainties in deducting relevant trust and estate administration expenses.

Outline

Section 67(g) provisions on 2 percent MIDs and possible impact on trust and estate deductions
Intersection of IRC 67(g) with Section 67(e) and potential uncertainty in treatment of fiduciary fees
State and local tax deduction cap and possible exception for trusts under Section 212
Excess deductions on termination of an estate or trust

Benefits

The panel will address these and other essential matters:

Deductions that trusts and estates lose under the new tax law
Caps on state and local tax deductions
The impact that the elimination of the 2 percent MID will have on estates and trusts
Specific expenses that would have been incurred if a property was not held in an estate or trust that may be excluded from the 2 percent MID floor

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Recognize the deductions that trusts and estates lose under the new tax law
Establish the caps on state and local tax deductions
Identify the impact that the elimination of the 2 percent miscellaneous deduction will have on estates and trusts
Identify specific expenses which would have been incurred if a property was not held in an estate or trust that may be excluded from the 2 percent MID floor

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm tax experience at mid-level preparing complex tax forms and schedules and/or supervising other preparers and accountants. Specific knowledge and understanding of Form 1041 Trust Income Tax reporting, distributable net income (DNI) and fiduciary accounting income (FAI), common tax deductions; familiarity with IRC 67(e) Miscellaneous Itemized Deduction rules

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.