Foundations of Preparing Form 1041 Trust & Estate Income Tax Return


Oct 05,2023

PRESENTER(s): Klaralee R. Charlton

1:00 PM ET | 12:00 PM CT | 10:00 AM PT | 180 Minutes
  • Webinar Instruction will be emailed on your registered email address 3 days prior to webinar
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  • Web Download / e-Transcript will be shared in 7 working days from the date of webinar

This program has been approved NASBA & IRS CPE Credit 3(Taxes)

Tax compliance issues for fiduciary entities are sometimes confusing to practitioners due to the fact that many lack experience in this area. The preparation of The US Income Tax Return for Estates & Trusts (Form 1041) is an art that requires juggling oft-competing obligations between the tax authorities, personal representatives and beneficiaries. This course will highlight unique issues related to Form 1041 and useful techniques practitioners can use to reduce overall tax liability.

In this Session the practitioner will have a better understanding of entities and the basics of Subchapter J of the Internal Revenue Code and tax compliance in preparing the U.S. Income Tax Return for Estates and Trusts (Form 1041).

Learning Objective:

  • Understand when to file Form 1041 and the types of entities that use Form 1041.
  • Advise clients on the available elections for Form 1041 to enable a trust or estate to achieve tax saving goals.
  • Analyze income and deductions and how to allocate each to the appropriate taxpayer and tax period.
  • Describe the importance of properly allocating income between the entity and the beneficiaries.

Session Highlights: 

  • Prepare the U.S. Income Tax Return for Estates and Trusts (Form 1041)
  • Understand the fiduciary’s tax filing requirements.
  • Identify reportable items of income and deductible expenses.
  • Schedule K-1 for beneficiaries
  • Explain when Form 1041 is required to be filed and for what types of entities. 
  • Learn how to best allocate income and deductions between the entity and beneficiaries to achieve optimal tax outcomes. 
  • Analyze the available elections for trusts and estates and choose the best options for ease of administration and tax savings. 
  • Determine which beneficiaries are eligible to receive distributable net income and how to report income and excess deductions to beneficiaries. 
  • Identify permissible charitable deductions and how clients can better plan to achieve optimal income tax results. 
  • Prepare a typical Form 1041 illustrating the receipt of income such as interest, dividends, and IRA distributions, the sale of real estate and distributions to beneficiaries. 
  • Understanding of distributable net income (DNI)
  • Understanding of income in respect of a decedent (IRD)
  • Line-by-line instruction (Income, Deductions, and Payments)
  • Recall QSST and EBST elections
  • Live Q&A session will be held after the event.

Credits and Other information:

  • Recommended CPE credit – 3.0
  • Recommended field of study – Taxes
  • Session Prerequisites and preparation: None
  • Session learning level: Basic
  • Location: Virtual/Online
  • Delivery method: Group Internet Based
  • IRS Course ID: PJGWS-T-00070-23-O
  • Attendance Requirement:  Yes
  • Session Duration: 3 Hours
  • Case Studies and Live Q&A session with speaker
  • PowerPoint presentation for reference

Who Will Benefit:

  • CPA
  • Enrolled Agents (EAs)
  • Tax Professionals
  • Attorneys
  • Other Tax Preparers
  • Finance professionals
  • Financial planners
Speaker Profile:
Klaralee Charlton is a Shareholder with Katz, Look & Onorato, P.C. where she practices fiduciary tax, estate administration, and business transactional law. As part of her practice, Ms. Charlton guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. She also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.

Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She previously served as Chair of the Colorado Bar Association, Tax Section and President of the Greater Denver Tax Counsel Association. She earned her J.D. from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver, and her B.A. in political science from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.

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