A Roadmap to Estate and Trust Income

Presented by:Larry Gray, CPA

Who Reports, Who Pays? Who Reports Who Pays

1/1 Date of Death 12/31

• Trust – No Distribution 1040 Joint 1041 1041

• Trust – Distribution 1040 Joint 1041- Dist - 1040 1041/1040

• CD “POD” 1040 Joint 1040 - Son 1040 - Son

• Trust – Distribution 1040 Joint 1040 Joint 1040 Joint

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Example 5

• Client picked up her uncle’s 1041 estate return for 2009. This was the first year of the estate and will still continue for 1 – 2 more years. She saw a NOL worksheet and a negative taxable income including excess deductions. Her question:– How did we decide what income went on the 1041

and she as a beneficiary, what part of the loss does she get?

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Thank You

• Thank you for attending this session.

• Don’t forget to stop by the NATP booth in the Expo Hall for a handout related to this session.

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