Form 1041 Reporting of Pecuniary Property-in-Kind Distributions: Tax Impact on Trusts and Estates
Tax Treatment of Formula Bequests, Distributions of Substitute Property to Satisfy Pecuniary Provisions, and Section 643(e) Elections
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax professionals who advise fiduciaries in trust and estate matters with a thorough and practical guide to reporting pecuniary property-in-kind distributions from trusts and estates on Form 1041. The panel will discuss proper reporting for property substitutions to meet pecuniary bequests, pecuniary formulas, and available tax elections to optimally apportion gain recognition. The program will also offer specific illustrations of the tax calculations and reporting of property distributions to meet pecuniary designations.
- Default rule for treatment of pecuniary bequest distributions
- Distribution of substitute property
- Sale of assets to satisfy pecuniary bequest distribution provisions
- Formula pecuniary bequests
- Using IRA or other IRD assets to satisfy pecuniary bequest
- Section 643(e)(3) elections
The panel will discuss these and other important topics:
- What language in formula pecuniary bequest provisions will trigger gain recognition by the fiduciary?
- Treatment of interest income on funding pecuniary bequests
- Mechanics of sale/exchange treatment on distribution of appreciated property to satisfy a pecuniary bequest provision
- Section 643(e)(3) election to recognize gain or loss on property distribution at the fiduciary level
- Form 1041 reporting of in-kind distributions to satisfy pecuniary bequests
Lawrence H. McNamara, Jr., CPA, FVS, TEP
Mr. McNamara has over forty years of experience practicing in the areas of trust, estate, gift and inheritance... | Read More
Mr. McNamara has over forty years of experience practicing in the areas of trust, estate, gift and inheritance taxation. He has extensive trust and estate accounting and administrative services experience. In addition to consultation and tax preparation services, he successfully represents clients in tax audits and has been engaged as the U.S. agent to represent foreign trustees and executors in tax return filings and communications with IRS and other tax authority representatives. He also performs fiduciary accounting services for clients.Close
Klaralee R. Charlton, J.D., LL.M.
Katz Look & Onorato
Ms. Charlton practices fiduciary tax, estate administration, and business transactional law. As part of her... | Read More
Ms. Charlton practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering an 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. She writes and lectures on topics including fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses.Close