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When a trustee makes distributions to bonrficiarics, the nature of those can often be a challenge to determine. And our tax preparation software doesn't automatically get it right. A 'simple' [...]

the Tax Cuts and Jobs Act of 2017 has a fundamental impact on federal fiduciary income taxes. For tax years 2018-25, these restrictive rules will change the way Form 1041 [...]

The Tax Cut and jobs Act made some signification changes to the way CPAs need to look at a trust. To understand the significance of those changes, CPAs first need [...]

Stale trusts (subtrusts to be created and funded pursuant to a decedent's estate plan as a result of the decedent's death that were not so created and funded) are an [...]

electing to treat a qualified Revocable Trust QRT as part of a decedent's estate under Internal Revenue Code Sec. 645 provides many planning opportunities during the period of administration and [...]

One of the more significant provisions of the 2001 Tax Act was the repeal of the federal estate tax in 2010. As a result of the phase-ins, phase-outs and sunset [...]

A taxpayer reaches age 70, and the decision is simple: start taking the minimum distribution using the joint life-expectancy table with the spouse if he or she is married, or, [...]

The CalCPA Committee on Taxation's recent liaison meeting with the FTB was the first, in many years. that I did not chair. I would like to thank CalCPA and FTB [...]

This year's annual liaison meeting between the FTB and the CalCPA Committee on Taxation opened with a presentation from FTB Executive Officer Selvi Stanislaus, who unveiled the FTB's five-year strategic [...]

CalCPA offers members many valuable resources on its website. Whether you deal with estate planning issues on a daily basis in your practice or just have an occasional question on [...]

With the proliferation of family trusts over the last two decades, and the misinformation provided by some promoters of these trusts, tax practitioners now have to deal with more cases [...]

An intentionally defective irrevocable trust (IDIT) is not a term you normally use when discussing estate planning with your clients; however, it can be a significant estate planning tool. The [...]

With the click of a button you can have instant access to a universe of knowledge and resources that is integral to your work as a tax and estate planning [...]

Real estate professionals are defined as taxpayers who conduct over 50% of their personal services in real estate activities in which they materially participate and where they spend at least 750 hours of time under Sec. 469(c)(7)(B) of the Omnibus Budget Reconciliation Act of 1993. Only those activities where the taxpayer materially participates qualify for exclusion, with the term material participation having the same meaning as its definition under the general passive activity rules. The activities cannot be grouped with any other activity in gauging the hours of service performed within any one activity. Individuals who wish to claim exclusion under Sec 469 rules must be able to substantiate their position., The 1993 Budget Reconciliation Act contained a provision that excludes certain rental real estate activities of real estate professionals from the passive activity rules. You may be surprised to find [...]

The Franchise Tax Board has relaxed its rules on installment agreements and offers in compromise in line with its efforts to strike a balance between its desire to become more responsive to taxpayers' concerns and the need to protect the public interest. Under its new policy, the Board will collaborate with taxpayers in developing a mutually acceptable plan that will facilitate taxpayer compliance. With regard to installment agreements, taxpayers with a liability of under $10,000 and a good payment history will not be required to submit a financial statement and will be given three years in which to pay their liability. As for offers in compromise, the FTB will now try to negotiate OIC applications rather than rejecting them outright.

Provides information on the recalculation method, an option picked up by individual retirement account (IRA) that yields the minimum amount of distribution, in the United States. Requirements of a trust as beneficiary; How to be qualified as a QTIP trust as a beneficiary; Choosing the right custodian.