Fiduciary Income Taxation covers the income taxation of trusts, estates, and their beneficiaries; the quasi-conduit approach of Subchapter J; distributable net income and the distribution deduction; in kind distributions; post-mortem planning; funding of marital deduction trusts; basis to beneficiaries; income in respect of a decedent; grantor trusts; trusts for minors; charitable trusts; and the effects of the uniform income and principal act. This is an in-depth treatment of the subject matter introduced in TXX 5762. Prerequisite: TXX 5762.

( TXX 5762 OR GMP 5762 )

The study of taxation can be divided into many areas: individuals, partnerships, limited liability companies, corporations, estates and trusts, gift tax and state taxes to name a few. The emphasis in this course will be the federal income taxation of trusts and estates and their beneficiaries.
By the end of this course, the student should be able to:

1. Recognize and discuss the differences between the federal income tax rules applicable to estates and those applicable to trusts.

2. Explain the differences between fiduciary accounting income (under state law) and distributable net income earned or received by estates and trusts.

3. Understand and explain the separate share rule as applied to estates and trusts.

4. Understand the effect on federal income taxation of proper timing of distributions from estates to beneficiaries, including application of the 65- day rule.

5. Understand the federal income tax differences between taxing traditional ¿income/remainder¿ trusts and their beneficiaries versus ¿total return trusts¿ and their beneficiaries.

6. Compute the taxable income of an estate, a simple trust, a complex trust, and split interest charitable trusts.

7. Explain the federal income tax return filing requirements for estates and trusts including rules for filing returns and payment of tax, interest and penalties, and the Section 645 election.

1. Required Materials


1. Textbooks

1041 Preparation and Planning Guide - 2009
Kess and Weltman
Commerce Clearing House
ISBN: 9780808019589

Notes: Textbooks may be purchased from the NSU Bookstore by calling 1-800-509-2665 or online at www.nsubooks.bkstore.com.

Federal Income Taxes of Decedents, Estates, and Trusts - 23.Edition CCH Editors
Commerce Clearing House
ISBN: 9780808017868

Notes: Textbooks may be purchased from the NSU Bookstore by calling 1-800-509-2665 or online at www.nsubooks.bkstore.com.

Federal Estate & gift taxes, Code and Regulations, Including Related Income Tax Provisions - 2009
CCH Editors
Commerce Clearing House
ISBN: 9780808020004

Notes: Textbooks may be purchased from the NSU Bookstore by calling 1-800-509-2665 or online at www.nsubooks.bkstore.com.


APA Manual
Effective October 1^st 2009, the 6th edition of the APA Manual is required for all courses.

NSU Bookstore
Textbooks and Case Studies may be purchased from the NSU Bookstore (located in the University Park Plaza) by calling 1-800-509-2665 or online at http://www.nsubooks.bkstore.com.



2. Recommended Materials

Income Taxation of Fiduciaries and Beneficiaries, Byrle M. Abbin (Volumes 1 and 2), latest edition, CCH.

1041 Express Answers, Income Tax Compliance and Planning - 2007 Tax Year, ISBN 978-0-8080-1799-8

Effective Writing: Handbook for Accountants, most recent edition- May

The NSU libraries comprise the Alvin Sherman Library, Research, and Information Technology Center, East Campus Branch Library, Health Professions Division Library, Law Library and Technology Center, North Miami Beach Branch Library, University School Library Media Centers, and the William S. Richardson Ocean Science Library. Students are strongly encouraged to visit one of the physical locations and/or take advantage of the vast electronic library available for research. For more information, please visit http://www.nova.edu/library.

Please note that all required and recommended materials should be referenced in APA style.