Tax Compliance for Decedents
16 CPE for EA, CPA, CRTP and CFP®
They say only two things are certain—death and taxes. Be prepared to assist taxpayers with tax filing before and after death. This course explains the basic rules for preparing a decedent's final personal income tax return, the income tax rules governing a decedent's estate and the federal estate tax return. Examples illustrating these rules by preparing Form 1040, 1041, and 709 are presented throughout the text.
Upon completion of this course, you will be able to:
- Allocate the correct amount of income, deductions, and credits on a final Form 1040.
- Utilize a decedent's net operating loss (NOL), capital loss carryovers, passive losses, and other tax attributes on the final Form 1040 to minimize tax.
- Identify forms needed to finish a decedent's final return.
- Calculate distributable net income, fiduciary accounting income, and the income distribution deduction in compliance with both tax law and governing document.
- Calculate income in respect of a decedent in compliance with both tax law and governing document.
- Identify required documents and forms for completing Form 1041 for an estate.
- Identify what is required to treat a revocable trust as part of an estate.
- Determine if the estate should make an election to treat a revocable trust as part of the estate in order to minimize tax.
- Accurately report estate interest, dividend, capital gain, and miscellaneous income so the beneficiaries can accurately prepare their individual tax returns.
- Decide which form (Form 706 vs. Form 1041) to use when reporting a decedent's deductible expenses in order to minimize the decedent's overall tax burden.
- Accurately complete Form 706 in order to use the portability exclusion.
- Distinguish the differences in estate tax rules between a resident and nonresident estate.
CPE Sponsor Information
Course Year: 2014
Course Level: Intermediate
Prerequisite: Basic knowledge of individual income tax
Advance Preparation: Download Forms 1041, 706 and 706-NA from the IRS website and have the form available to reference.
Delivery Method: Group-Live
|CPE Credits||Designation||Field of Study|
|IRS||16||EA||Federal Tax Law Topic|
|CTEC||16||CRTP||Federal Tax Law Topic|
|CFP Board||16||CFP®||Income Tax Planning|
For IRS purposes, there is no competency test or mandatory continuing education for other tax return preparers, but this category of tax preparer may take continuing education voluntarily.