|It provides step-by-step guidance on the basics of Form 1041 preparation as well as more complex issues, such as determining fiduciary accounting income and distributable net income (DNI), computing the distribution deduction, allocating capital gains and depreciation, reporting income in respect of a decedent, filing Form 1041 in the estate or trust's final year, and more.
Detailed examples, filled-in tax return forms, and planning tips show you how to report income, deductions, and distributions. The companion Quick Reference Binder contains numerous tables, practical worksheets, checklists, and election statements to help save time and effort when preparing 1041s.
Some of the important new features include:
- New Guidance on FATCA and Form 8938 Reporting Issues. The Foreign Account Tax Compliance Act (FATCA) requires special reporting of certain foreign accounts and assets on Form 8938. For tax years beginning in 2012, domestic trusts with specified foreign accounts over a certain threshold amount must file Form 8938. This edition has been updated to cover these rules.
- Executor or Trustee’s Personal Liability for Unpaid Taxes. A recent IRS ruling illustrates the importance of making sure no distributions of estate or trust property are made until the decedent’s income, gift, and estate taxes have been paid. This update includes a discussion of the fiduciary’s personal liability for these taxes.
- New Transmittal Letters for Electronic Filing. Practitioners are now required to file fiduciary income tax returns electronically if their firm files more than 10 tax returns, including Forms 1040, 1040A, 1040EZ, and 1041. This update provides (a) a detailed discussion of the requirements, as well as when waivers from electronic filing are allowed, (b) a sample client letter explaining the mandatory e-filing requirements, (c) a sample statement documenting a taxpayer’s choice to file on paper instead of electronic filing when otherwise required, and (d) sample client transmittal letters explaining the procedures for electronic filing and payment of any tax due.
- Planning for the New Medicare Surtax. A tax on net investment income is scheduled to apply beginning in 2013. This edition includes various planning strategies that, if implemented before 2013, can help minimize the tax.
Integration with UltraTax CS™
PPC’s 1041 Deskbook now integrates directly with UltraTax CS™ form software from Creative Solutions. Quickly find the correct answers to your tax preparation questions – directly from your input screen! Simply click on the PPC icon on the UltraTax CS™ screen and the PPC Deskbook guidance and practice aids directly dealing with that input screen topic will display. Don’t spend valuable time keyword searching or browsing a table of contents for your answer. Clicking on the relevant link takes you directly to the information you need!
For information on UltraTax CS software or to view a demo of the integration with PPC Deskbooks on Checkpoint, visit
http://cs.thomson.com/tax/quicklook.aspx and click on the PPC Deskbooks link.