Question

Prepare a five page report of the following.

please type the answer instead of writing

1.) Discuss the various Income, Deductions, Exemptions, Exclusions and their associated attached forms that are prominently featured in the preparation of the form 1041- Tax Returns for Estate and Trust.

Answer 1

Form 1041- Tax Returns for Estate and Trust.

Incomes

1 Interest income

2a Total ordinary dividends

2b Qualified dividends allocable to: (1) Beneficiaries (2) Estate or trust

3 Business income or (loss). Attach Schedule C or C-EZ (Form 1040)

4 Capital gain or (loss). Attach Schedule D (Form 1041)

5 Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040)

6 Farm income or (loss). Attach Schedule F (Form 1040)

7 Ordinary gain or (loss). Attach Form 4797

8 Other income.

Deductions ​

1 Interest. Check if Form 4952 is attached

2 Taxes

3 Fiduciary fees. If a portion is subject to the 2% floor

4 Charitable deduction

5 Attorney, accountant, and return preparer fees. If a portion is subject to the 2% floor

6a Other deductions not subject to the 2% floor

6b Net operating loss deduction.

6c Allowable miscellaneous itemized deductions subject to the 2% floor

7 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041)

8 Estate tax deduction including certain generation-skipping taxes .