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REG 46-Fiduciary taxation
Terms in this set (12)
Tax years for estates and trusts?
Trusts must use calendar year
Estates may elect different years
When are fiduciaries required to file?
Major income concepts for fiduciaries?
Income is taxed only once to either the fiduciary or the beneficiary
How to determine who income is taxed to?
Income that is distributed to the beneficiaries is taxed to them and flows through with same character
Income that remains in the trust throughout the year is taxed to the trust
Deductions and credits for fiduciary returns, generally?
Similar to individuals
Treatment for administration costs and losses of an estate?
May be deducted on either the fiduciary return or the estate return
Treatment of state inheritance or estate taxes?
Treatment for extraordinary items?
Allocated to principal, not income
What is IRD?
Income in Respect of a Decedent
Income earned before a taxpayer died but not received
Treatment for IRD?
Included in the gross estate for estate tax purposes and included in taxable income for the estate
Character of income is the same as if the decedent held it
What is Distributable Net Income?
Maximum amount that the fiduciary can use as a deduction and on which the beneficiaries can be taxed
Taxpayer may be taxed at less because DNI includes tax exempt income
+ net tax-exempt income
+net capital loss
- net capital gains allocable to corpus
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