During part 2, of this 4-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.
Target Audience
Tax practitioners, accountants and financial professionals.
Course 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
Subjects
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
Prerequisites
Fiduciary Taxation Part 1: Introduction to Form 1041
