Estates, Gifts & Trusts
Income Taxation of Trusts and Estates (852 - 2nd)
Portfolio Description
Tax Management Portfolio, Income Taxation of Trusts and Estates, No. 852-2nd, provides detailed coverage of the rules governing the income taxation of estates, trusts, and their beneficiaries.
The portfolio discusses the types of entities covered by the rules of subchapter J of the Code, including the practical problems which can occur if an entity is classified as a business entity instead of a trust or the administration of an estate is unduly prolonged.
The Detailed Analysis provides comprehensive coverage of the rules governing the gross income and exclusions of an estate or trust, allowable deductions, and credits. The portfolio includes a detailed discussion of the rules concerning the interrelationship of the taxation of estates and trusts and their beneficiaries. The concept of distributable net income and its applicability in determining the taxation of simple trusts, complex trusts, and estates and their respective beneficiaries are analyzed in depth. This analysis includes the appropriate methods to determine the distribution deduction resulting from distributions to beneficiaries of simple trusts, complex trusts, and estates. The rules regarding the manner of determining the income taxable to beneficiaries, whether it be cash or distributions in kind, also are explained. It also addresses the repeal of the throwback rules, the election to treat the decedent's revocable trust as part of the decedent's estate, and the simplified taxation available for pre-need funeral trusts, as well as the impact of related IRS regulations.
Throughout the portfolio, practical applications of these rules are included.
The portfolio gives a comprehensive analysis of the tax issues that arise in the application of subchapter J to estates, trusts and their beneficiaries. But, certain areas of subchapter J have been considered in separate Tax Management portfolios. These portfolios are 856 T.M., Subchapter J--Throwback Rules (which have been repealed for most domestic trusts); 858 T.M., Grantor Trusts: Sections 671-679; and 862 T.M., Income in Respect of a Decedent .
This portfolio may be cited as Acker, 852-2nd T.M., Income Taxation of Trusts and Estates .
University of Illinois (B.S. 1974), Illinois Institute of Technology, Chicago-Kent School of Law (J.D. 1977); member, Ohio, Illinois, and Virginia Bars; member, American Institute of Certified Public Accountants and Ohio CPA Society; Fellow, American College of Trusts and Estates Counsel; adjunct professor of law at Capital University Law and Graduate Center, Columbus, Ohio; contributor to Tax Management Estates, Gifts and Trusts Journal, Estate Planning, and other legal publications; lecturer at various tax seminars.
