R4 - Estate, Trust, and Gift Taxation

Question 1

What is the income distribution deduction equal to the lesser of?

Answer 1

Actual distribution or distributable net income (less tax-exempt interest)

Question 2

For how many years is an estate exempt from making estimated tax payments?

Answer 2

First two tax years

Question 3

What tax periods are available to estates? Trusts?

Answer 3

Estates are calendar or fiscal and trusts are only calendar

Question 4

How is distributable net income (DNI) calculated?

Answer 4

Estate gross income
- Estate deductions
+ Tax-exempt interest
- Capital gains (attributable to corpus)

Question 5

What are the exclusion amount for a complex trust, a simple trust, and an estate?

Answer 5

$100, $300, and $600, respectively

Question 6

How is income distribution deduction calculated?

Answer 6

The lesser of:
Actual distribution - tax-exempt interest
or
DNI - tax-exempt interest

Question 7

When is the tax return for an estate due?

Answer 7

April 15

Question 8

Where are ordinary and necessary administration expenses paid by the fiduciary of an estate deductible?

Answer 8

On the fiduciary income tax return (Form 1041) only if the estate tax (Form 706) deduction is waived for these expenses