Course Description

Preparing returns for estates can be difficult, especially if you do not prepare these kinds of returns often, but these services are vital for our clients. This course provides the practitioner with a practical understanding of Federal estate law. We will examine Forms 1041 and 706 and will address how and when to prepare each form. We will also discuss planning suggestions to minimize taxation where possible for clients.

Areas covered in Session:

• Form 1041 and 706 preparation
• Compliance issues and key topics including asset valuation, deductions, tax liability and portability elections
• Descendent 1040 preparation and planning discussions to minimize taxability

Session Highlights:

• Preparation of forms 1041 and 706
• Estate income, common examples and proper reporting on form 1041
• Six major components of Form 706 to ensure compliance
• Determining Tax Liability
• Portability elections, their availability and use
• Asset valuation and deduction compliance and their impact on tax calculations
• The ins and outs of the “portability” rules, including how the rules actually work using common examples
• Issues involved in the preparation of the decedent’s final federal income tax return (Form 1040)
• Income tax consequences

Key Takeaway Points:

• Successfully and correctly complete forms 1041 and 706
• Understand and obey compliance requirements for forms 1041 and 706
• Understand asset valuation, estate deductions, and correctly ascertain the impact on tax liability
• Explain tactics to assist clients in estate planning to minimize future tax liability

Why You Should Attend:

The executor of a decedent's estate uses Form 1041 to report estate income. One uses Form 706 to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code, and, also used to compute the generation-skipping transfer (GST) tax imposed by Chapter 13 on direct skips. This form is a complicated to prepare.

Who should Attend

• Accountants
• Tax Preparers
• Lawyers
• CPA
• Enrolled Agents