MTAX 6490

Income Tax of Trusts, Estates, and Beneficiaries

There are five major income tax areas that are fundamental to a CPA or legal tax practice: (1) individual; (2) partnership; (3) C corporations; (4) S corporations; and (5) fiduciary taxation. This course focuses on the last of the core types of income taxation fundamentally, the taxation of trusts, estates and their beneficiaries under Subchapter J of the Internal Revenue Code. There are three major areas covered by Subchapter J. First, the grantor trust rules deal with revocable trusts and, to many practitioners surprise, many irrevocable trusts. Second, estates and irrevocable trusts that are not grantor trusts are governed by the distributable net income rules. Third, when someone inherits an asset that was not taxed to the decedent, such as a retirement plan, the income in respect of a decedent rules apply to the heir. This course examines each of these three major areas of income taxation under Subchapter J and focuses on the practical aspects of completing IRS Form 1041, U.S. Income Tax Return for Estates and Trusts, using real life examples. Restriction: Restricted to graduate majors and NDGR majors with a sub-plan of NBA or CPA within the Business School.

Units: 3.0

Hours: 3 to 3