Connecting with the IRC to let Clients and interested parties know that we are here for you on correponding Services - Todays look connects to Estates and Trust an important intersecting point of specifically defined Legal Entity (in this case the Trust) and corresponding Tax Compliance responsibilities.
Trusts are an important area where Legal needs, responsibilities and corresponding Accounting and Tax duties connect. The citation below addresses the start point of Taxation upon the Gross Income of Estates and Trusts through introducing and defining "Gross Income of Estates and Trusts" for Tax Purposes under the IRC.
Our focus is on the Accounting, Tax and Compliance of the matter - for Legal Interpretations and Legal Advice you would need to consult an Attorney.
§ 1.641(a)-2 Gross income of estates and trusts.
The gross income of an estate or trust is determined in the same manner as that of an individual. Thus, the gross income of an estate or trust consists of all items of gross income received during the taxable year, including:
(a) Income accumulated in trust for the benefit of unborn or unascertained persons or persons with contingent interests;
(b) Income accumulated or held for future distribution under the terms of the will or trust;
(c) Income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of an infant which is to be held or distributed as the court may direct;
(d) Income received by estates of deceased persons during the period of administration or settlement of the estate; and
(e) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated. The several classes of income enumerated in this section do not exclude others which also may come within the general purposes of section 641.
Citation as of 6/5/12 ALL US Tax Laws subject to change and update and you must confirm as filing or relying.
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