Chapter 1 1-1
What is a Trust? What is an Estate? 1-1
What is a trust? 1-2
Decedent’s estates 1-15
Chapter 2 2-1
The Fundamentals of Fiduciary Accounting 2-1
Fiduciary accounting under the UPAIA 2-4
Distinguishing income from principal under the UPAIA 2-5
The allocation of disbursements 2-15
Practice exercise 2-1 2-25
Chapter 3 3-1
Taxation of Trusts and Decedent’s Estates: An Overview 3-1
Introduction 3-2
Defining passive income 3-9
Accounting periods 3-11
Section 645 election 3-12
Accounting methods 3-13
Estimated tax 3-14
Tax identification number 3-16
Chapter 4 4-1
Gross Income for Trusts and Decedent’s Estates 4-1
Items to include 4-3
Treatment of property distributed in-kind 4-6
Chapter 5 5-1
Ordinary Deductions and Credits 5-1
Trade or business expense 5-2
Income-producing activities 5-3
Interest 5-4
Taxes 5-6
Losses and bad debts 5-7
Depreciation, amortization, and depletion 5-10
Deductions and credits in respect of a decedent: Section 691(b) 5-13
Deduction for estate taxes paid: Section 691(c) 5-14
Deductions that may be allowable for estate tax purposes 5-15
Qualified business income deduction for trusts and estates 5-16
Charitable contribution deductions 5-17
Suspension of miscellaneous itemized deductions subject to the two-percent floor 5-20
Deduction in lieu of exemption 5-21
Tax credits 5-22
Chapter 6 6-1
The Income Distribution Deduction 6-1
Defining DNI 6-2
Distinguishing simple trusts from complex trusts 6-4
Section 651(a): Deduction for distributions to beneficiaries of a simple trust 6-5
Section 661(a): Deduction for distributions of complex trusts and decedent’s estates 6-9
Practice exercises 6-14
Chapter 7 7-1
How Beneficiaries are Taxed 7-1
The taxation of a simple trust beneficiary 7-2
The taxation of complex trust and estate beneficiaries 7-7
Practice exercises 7-13
Chapter 8 8-1
Special Rules Round-Up 8-1
Unused deductions passed through to beneficiaries upon termination of an estate or trust 8-2
The throwback rules 8-3
Special rules applicable to Sections 661 and 662 8-5
Practice exercise 8-1 8-10
Chapter 9 9-1
The Tax Treatment of Grantor Trusts 9-1
When is a grantor treated as an owner? 9-3
Reversionary interests 9-7
Power to control beneficial enjoyment 9-9
Retention of administrative powers 9-13
Power to revoke 9-15
Income for benefit of grantor 9-16
Person other than grantor treated as substantial owner 9-18
Foreign trusts having one or more U.S. beneficiaries 9-19
Chapter 10 10-1
Taxation of Special Trusts 10-1
Pooled income funds 10-2
Electing small business trusts 10-5
Bankruptcy estates 10-11
Special rule for certain revocable trusts: Section 645 10-14
Chapter 11 11-1
Filing Form 1041: U.S. Income Tax Return for Estates and Trusts 11-1
Who must file 11-2
Method of reporting for grantor trusts 11-4
Pooled income funds 11-7
Electing small business trust 11-8
Bankruptcy estate 11-10
Other types of trusts 11-12
When to file 11-13
Who must sign 11-14
Interest and penalties 11-15
Appendix A A-1
Form 1041: U.S. Income Tax Return for Estates and Trusts A-1
Glossary Glossary 1
Index Index 1
Solutions Solutions 1
Chapter 1 Solutions 1
Chapter 2 Solutions 3
Chapter 3 Solutions 6
Chapter 4 Solutions 7
Chapter 5 Solutions 8
Chapter 6 Solutions 9
Chapter 7 Solutions 18
Chapter 8 Solutions 21
Chapter 9 Solutions 23
Chapter 10 Solutions 25
Chapter 11 Solutions 26
