Tax Education in Autumn 2007
As tax professionals we are continuing taking education to enhance our skills.
From time to time we are asked about what classes we take. Recently at a 2-day
seminar we took the following classes:
Day 1
Decedent's Final Returns
When a person dies their final tax returns are quite different from previous returns.
Even their final Form 1040 will be done different in that the amounts reported
on that return are often different from the amounts that appear on income
reporting documents (e.g., 1099-INT for interest income, W-2 for wages or salary,
1099-DIV for dividend income). Some of that income does belong to the deceased and
will therefore be reported on their From 1040, but part of it actually belongs to
their estate and will be reported on a Form 1041 or to a beneficiary and must be
reported on that person's Form 1040.
This class also dealt with the impact of trusts, effects of holding property in
different forms (e.g., Community Property, Joint Tenancy), administrative trusts,
fiduciary accounting versus tax accounting, and the tax filing for each item.
Also included in the course was a review of probate and probate aavoidance, and
issues related to trust planning.
Interest, Dividends, and Capital Gains
There are plenty of ordinary issues associated with interest, dividends, and
capital gains which are easily dealt with by most tax professionals.
Then there is another group of issues that require special study.
These include forgone interest, below-market loans,
strategies for children helping parents on fixed income,
interest at illegally high rates, original issue discounts (OID),
extraordinary dividends, foreign corporations, substitute payments,
nontaxable distributions, stock distributions, return of capital,
investment clubs, puts and calls, short sales, wash sales, worthless securities,
sale of mutual funds, installment sales of many flavors,
and investment interest expense treatment plus lesser topics.
Estate Planning for Singles and Unmarried Partners
While for most people ordinary estate planning is complicated enough,
the picture is a lot more complicated in these special cases.
This class focused on how the traditional tools work differently in these
situations, plus examinations of Charitable Remainder Trusts and
Charitable Lead Trusts. Some time was spent on Grantor Retained Interest Trusts
and Reciprocal Living Trusts.
Ethics Panel
A special two-hour session looking at common ethics dilemmas and how to deal with them.
Day 2
Federal and California Update
A full day spent examining the changes in tax law affecting 2007 and
a review of key court cases that will impact the administration of tax law.
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