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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

IRC Section 67(g) and Form 1041 Trust Deduction Rules: Fiduciary Fees, State and Local Taxes, and Other MIDs

$197.00

This course is $0 with these passes:

CPE
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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.

Presented By

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. Mr. Doyle is a lecturer in law in the Graduate Tax Program at Boston University School of Law.

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Jacqueline A. 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. Ms. Patterson is a nationally recognized speaker and has been a seminar discussion leader and author for many years, writing and facilitating seminars in estate planning, income taxation of trusts and estates, fiduciary accounting, tax research and planning, trusts, real estate transactions, corporate taxation and charitable trusts. She has held adjunct faculty positions in the graduate tax programs at both USC and Golden Gate University. As well as being a conference speaker for the AICPA, Ms. Patterson also served on an AICPA special task force studying fiduciary accounting and on the AICPA Estate and Gift Technical Resource Panel. 

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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).

Date + Time

  • event

    Thursday, June 4, 2020

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

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

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

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

BARBRI 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.

IRS Approved Provider

BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .