In part 2 of this four-part series, we'll focus on the concept of fiduciary accounting and its relationship to fiduciary taxation. It also addresses the identification of a "simple trust" for purposes of taxation. Problem examples will cover both the calculation of fiduciary accounting and the taxation of simple trusts through the use of an Excel spreadsheet that translates to a completed Form 1041. Be sure to register for all courses in this series: Fiduciary Taxation Part 1: Introduction to Form 1041 Fiduciary Taxation Part 2: Fiduciary Accounting & Simple Trusts Fiduciary Taxation Part 3: Complex Trusts & Charitable Deduction Fiduciary Taxation Part 4: Miscellaneous Topics & AMT
Learning Objectives
• Determine the importance of understanding fiduciary accounting and the special issues with simple trusts
• Recognize the authority for determining fiduciary accounting
• Identify "Income" and "Principal" and the tax treatment of simple trusts
Major Topics
• Review the Basic Concept of Fiduciary Duty
• Review the Basic Concept of Fiduciary Accounting
• Use of a Diagram to Distinguish Income and Principal
• Calculating Fiduciary Accounting Income
• Requirements of a Simple Trust
• Problem Example Spreadsheets Reflecting Fiduciary Accounting and Taxation of Simple Trusts as well as how Depreciation is Handled by a Fiduciary Entity
• Problem Examples Reflecting a Completed Form 1041 using Spreadsheet Calculations for Fiduciary Accounting and Taxation of Simple Trusts
