Income Taxation of Estates and Trusts: The Law

Steven G. Siegel

November 2, 2006

TABLE OF CONTENTS

 

I. Introduction

 

CHAPTER 1: BASIC CONCEPTS AND ISSUES
      I. ESTATES
             A. Commencement
             B. Duration
             C. Income Taxation
             D. Accounting Method
             E. Taxable Years
             F. Estimated Payments
             G. Tax Return Filing Requirements
             H. Tax Rates

      II. TRUSTS
             A. Commencement
             B. Duration
             C. Income Taxation
             D. Taxable Years
             E. Estimated Tax Payments
             F. Tax Return Filing Requirements
             G. Tax Rates

             H. Election To Treat A Qualified Revocable Trust As Part of the Decedent's Estate

 

CHAPTER 2: FIDUCIARY TAX AND ACCOUNTING ISSUES
      I. TRUST ACCOUNTING INCOME
      II. DISTRIBUTABLE NET INCOME (DNI)
      III. NEW REGULATIONS REVISE THE DEFINITION OF “INCOME” FOR
                    TRUST PURPOSES
      IV. TAXABLE INCOME

 

CHAPTER 3: INCOME REPORTABLE BY FIDUCIARIES

             A. Interest Income
             B. Ordinary Dividend Income
             C. Qualified Dividend Income
             D. Business Income
             E. Capital Gains and Losses
             F. Rents, Royalties, Partnerships, Income from Other Estates and Trusts
             G. Farm Income
             H. Ordinary Gain or Loss (Form 4797)
             I. Other Income
             J. Exclusions from Income Under the Victims of Terrorism Tax Relief Act of 2001


CHAPTER 4: DEDUCTIONS AVAILABLE TO FIDUCIARIES
      I. General Rules
      II. Specific Items of Deduction

             A. Interest Expenses
             B. Taxes
             C. Fiduciary Fees
             D. Charitable Deductions
             E. Attorney, Accountant, Return Preparer Fees
             F. Other Deductions Not Subject to the 2% Floor
             G. Allowable Miscellaneous Itemized Deductions Subject to the 2% Floor
             H. Income Distribution Deduction
             I. The Separate Share Rule Applied to Trusts and Estates
             J. Estate Tax Deduction (Including IRD Items and Certain Generation-Skipping
                       Taxes)
             K. Exemptions

 

CHAPTER 5: TAX CALCULATIONS, CREDITS AND PAYMENTS REFERENCES

             A. How To Handle A Loss Incurred By the Trust or Estate
             B. How To Handle Taxable Income Realized by the Trust or Estate


CHAPTER 6: DISTRIBUTIONS; SPECIAL ISSUES AND SITUATIONS

             A. The Tier System
             B. Distributions in the Year of Termination
             C. Accumulation Distributions – The Throwback Rules – Partially Repealed
             D. Accumulation Distributions – The Throwback Rules – Where Still Effective
             E. Taxation of Distributions of Principal (Corpus)

 

CHAPTER 7: TRUSTS and ESTATES and the ALTERNATIVE MINIMUM TAX

             A. General Rules

 

CHAPTER 8: SPECIAL SITUATION TRUSTS: CHARITABLE SPLIT-INTEREST TRUSTS

             A. General Rules
             B. Charitable Remainder Trusts
             C. Pooled Income Funds
             D. Charitable Lead Trusts
             E. Planning Points

CHAPTER 9: SPECIAL SITUATION TRUSTS: GRANTOR TRUSTS
             A. Overview
             B. Planning Opportunities With Grantor Trusts

CHAPTER 10: SPECIAL SITUATION TRUSTS: QUALIFIED SUBCHAPTER S TRUSTS
             A. General Rules
             B. Planning Situations
             C. Electing Small Business Trusts
             D. Converting from ESBTs to QSSTs, or vice versa

CHAPTER 11: SPECIAL SITUATION TRUSTS: GENERATION-SKIPPING TRUSTS
             A. General Rules
             B. Transfers Giving Rise to the GST Tax
             C. Transfers Excluded From the GST Tax
             D. The GST Tax Exemption
             E. Imposition and Payment of the GST Tax
 

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