This workshop provides an understanding of the similarities and differences between individual and fiduciary taxation and the mechanics of preparing a basic Form 1041. Special emphasis is given to the important interrelationship between trust and tax law for the proper completion of a fiduciary tax return.

Legal operation of estates and trusts

• Identifying the different types of property ownership.
• Knowing how to create a trust and which type of trust is needed and its purpose.
• Knowing how an estate is created and its proper operation until final settlement.

Fiduciary accounting

Fiduciary accounting’s purpose is to “provide essential and useful information in a meaningful form to the parties interested in the accounting process”.

• Understanding the basics of fiduciary accounting and the difference between fiduciary accounting and financial accounting.
• Being able to apply fiduciary accounting to tax accounting and preparation of Form 1041.

Fiduciary taxation

Fiduciary taxation is a special area of taxation by the federal government.

• Study of the applicable code sections that apply to taxation of trusts and estates focusing on the similarities as well as differences between individual and fiduciary taxation.
• Computation of the adjusted total income for the estate or trust.

Income distribution and taxation of beneficiaries

• Discussion of the differences between simple and complex trusts.
• Understanding and applying the division of Distributable Net Income as it applies to fiduciaries.
• Being able to determine the distribution deduction of income as well as the preparation of Schedule B, Form 1041 and the Schedule K-1 beneficiaries.

Alternative Minimum Tax

As with individuals, Alternative Minimum Tax (AMT) rules are complicated for estates and trusts.  In certain cases AMT is calculated and must be paid by an estate or trust.

• Knowing when to apply the rules and how to complete the appropriate forms.

Learn the rules concerning the computation of estate, gift, and generation skipping transfer taxes.

• Wealth transfer objectives

Federal Gift Taxes

• Objectives
• Introduction
• Taxable gifts
• Computation of gift tax liability

Federal Estate Tax

• Objectives
• Introduction
• Gross estate
• Estate tax deductions
• Taxable estate
• Estate tax credits

This course covers the income tax consequences of sole proprietorships, partnerships, C corporations and S corporations. Continuing examples of a single-member LLC and a multiple-member LLC are used to illustrate the formation, operation, and termination of an entity.

The tax consequences of taxing the single-member LLC as a disregarded entity, C corporation, or S corporation are compared to illustrate the differences among those business entities.

The tax consequences of taxing a multiple-member LLC as a partnership, C corporation, or S corporation are also compared to illustrate the differences among those business entities.

The discussion includes the consequences of contributing and distributing assets to the owners of the entity, the income tax effect of entity profits and losses, and the effect of those events on the entity’s basis in its assets and the owners’ bases in their ownership interest.

This is an intermediate level course. It is intended for tax practitioners who have small business clients. It will help those practitioners answer their clients’ questions about using business entities and prepare the income tax returns for those entities.

This workshop uses a case study approach to take the concepts of partnership taxation and apply them to the mechanics of partnership tax reporting on Form 1065. Topics include:

• Overview of partnership taxation and relevant updates
• The complexity of applying a hybrid of flow-through and entity concepts to various partnership transactions
• The need for tax basis capital accounts and the value of maintaining them on a market value basis
• Differences between profits, interests, and capital interests, and what this means for customers
• The differences between recourse and non-recourse debt and how to allocate appropriately
• The sale and redemption of a partnership interest and the differences between them
• The impact of I.R.C. 751 “hot assets” on the sale or redemption of a partnership interest
• Gifting of a partnership interest
• The death of a partner
• Distributions, guaranteed payments, and self-employment tax implications

Learn the rules of properly electing, operating, and reporting for a Subchapter S Corporation.

Where the S corporation stands

• • Comparison with unincorporated
  • Comparison with C corporation
  • Factors to compare:
    • Distributions
    • Type of income (service, etc.)
    • Self-employment tax
    • Net Investment Income Tax
    • Shareholder filing status
• Eligibility and election
• Shareholder basis
• Income and deductions of the corporation
  • Accounting methods
  • Depreciation and other property rules
  • Business interest limit
• Income and deductions of the shareholder
  • Pass through
  • Compensation
  • Grouping activities (“packing and cracking”)
    • Net Investment Income
    • QBI deduction
    • Loss limits
      • Stock and debt basis
      • Amount at risk
      • Passive activity loss limits
      • Limitation on business loss
• Corporate level tax (brief)
  • Built-in gains
  • Passive investment income
• Termination of  S Corporation status
  • Procedures
  • Inadvertence
  • After-effects
• Case study for reporting

This seminar introduces the income tax rules pertaining to landowners involved in leasing for natural gas drilling in New York State. It will provide a comprehensive background on the exploration, drilling and production processes, lease arrangements, and the current leasing situation for New York State landowners.

Specific coverage includes:  lease payments and pertinent lease clauses, depletion rules, royalty and working interests, miscellaneous income items, forced pooling, federal income tax legislation and regulations, application of AMT, special NYS tax issues, industry terminology, available research resources and suggested practices.