Critical Elections for Trust Gift and Estate Returns


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FOR LIVE PROGRAM ONLY
Critical Elections for Trust, Gift and Estate Returns: Forms 1041, 709 and 706; GST, QTIP, 663(b), 645
WEDNESDAY, JULY 10, 2019, 1:00-2:50 pm Eastern
IMPORTANT INFORMATION FOR THE LIVE PROGRAM
This program is approved for 2 CPE credit hours. To earn credit you must:
• Participate in the program on your own computer connection (no sharing) – if you need to register additional people, please call customer service at 1-800-926-7926 ext. 1 (or 404-881-1141 ext. 1). Strafford accepts American Express, Visa, MasterCard, Discover.
• Listen on-line via your computer speakers.
• Respond to five prompts during the program plus a single verification code.
• To earn full credit, you must remain connected for the entire program.
WHO TO CONTACT DURING THE LIVE PROGRAM
For Additional Registrations: -Call Strafford Customer Service 1-800-926-7926 x1 (or 404-881-1141 x1)
For Assistance During the Live Program: -On the web, use the chat box at the bottom left of the screen If you get disconnected during the program, you can simply log in using your original instructions and PIN.

Tips for Optimal Quality

FOR LIVE PROGRAM ONLY

Sound Quality When listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection.
If the sound quality is not satisfactory, please e-mail [email protected] immediately so we can address the problem.

Critical Elections for Trust, Gift and Estate Returns: Forms 1041, 709 and 706; GST, QTIP, 663(b), 645
July 10, 2019

Jonathan L. Grob, Attorney McGrath North Mullin & Kratz [email protected]

Christine G. Pronek, CPA, Partner PKF O’Connor Davies, LLP [email protected]

Notice
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

Fiduciary Return and Estate Tax Elections
Christine G. Pronek, CPA, MST [email protected] 908-967-6806 July 10, 2019

Topics:
Fiduciary Return Elections
▪ 65 Day Election ▪ IRC 645 Election ▪ Choice of Fiscal Year
Estate Tax Elections
▪ Portability ▪ QTIP Election ▪ Deduction of Expenses
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Fiduciary Return Elections
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65 Day Election (IRC 663(b))
• Available to estates and complex trusts. • Ability to treat any distribution made within first 65 days of subsequent
tax year as having been made in the prior year (by March 5, 2020 for 2019) − If the amount(s) distributed within the first 65 days of the subsequent
year exceed the amount needed for the election, only the portion for which the election is desired needs to be included in the election • Shift income out of compressed trust/estate income tax brackets to beneficiaries (try to avoid highest tax rates and Medicare surtax) − 37% rate once taxable income over $12,750 for 2019
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65 Day Election (IRC 663(b))
• Allows for “hindsight planning” to determine if shifting income out of the estate to the beneficiaries is desirable − Communication between the fiduciary return preparer and beneficiaries’ individual income tax return preparer(s) is key
• Maximum amount for which the election can be made is the greater of FAI or DNI
• Check the box in the Other Information section on page 2 of Form 1041 and attach election statement
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65 Day Election (IRC 663(b))
▪ Sample election for a trust
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Critical Elections for Trust Gift and Estate Returns