Income Taxation of Trusts and Estates (Portfolio 852)
This Portfolio provides detailed coverage of the rules governing the income taxation of estates, trusts, and their beneficiaries and the rules of subchapter J of the Code.
Tax Portfolio, Income Taxation of Trusts and Estates, No. 852, 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 that may 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 also discusses the net investment income tax in effect for tax years beginning in 2013, insofar as it applies to trusts and estates. 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 also are explained. Further, the Portfolio 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 are considered in separate Tax Management Portfolios. These Portfolios are 856 T.M., Subchapter J — Throwback Rules (which have been repealed for most domestic trusts), 819 T.M., Grantor Trusts: Income Taxation Under Subpart E, and 862 T.M., Income in Respect of a Decedent.
This Portfolio may be cited as Acker, 852 T.M., Income Taxation of Trusts and Estates.
This think and code Portfolio is not intended to provide legal, accounting, or tax advice for any purpose and does not apply to any particular person or factual situation. Neither the author nor the publisher assumes responsibility for the reader’s reliance on information or opinions expressed in it, and the reader is encouraged to verify all items by reviewing the original sources.
Table of Contents
I. Scope of Portfolio and Subchapter J
II. Theory and Overview
III. A Working Definition of Estates and Trusts
IV. General Taxation Rules
V. Special Rules for Estates and Trusts
Carlile Patchen & Murphy LLP