Program on Agriculture and Small Business Finance
Last offered in 2013
New York State Tax Professionals attending Mr. Barnhill’s previous Cornell summer workshops rated his workshops extremely high and requested that he return for further schools.
This practical workshop will provide you with a valuable understanding of the basic similarities and differences between individual and fiduciary taxation and the mechanics of how to prepare a basic Form 1041. Special emphasis will be given to the important interrelationship between trust and tax law for the proper completion of a fiduciary tax return.
You’ll learn about:
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’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 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.