Estates & Trusts: Fiduciary Income Tax Return (1041) Flashcards
1
Q
What are the exemption amounts for each type of the three types of fiduciaries?
A
Estate: $600
Simple Trust: $300
Complex Trust: $100
2
Q
What is DNI?
A
DNI is the same conceptual idea as AEP. It’s the maximum amount taxable to the beneficiary. Anything in excess of DNI is a return of capital, or inheritance, and nontaxable.
3
Q
What is the tax period for a trust?
A
Calendar year
4
Q
What is the tax period for an estate?
A
Calendar year OR fiscal year
5
Q
What is the tax treatment for Gifts and Inheritances?
A
Gifts and inheritances are not included in the taxable income of the recipient
