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State Fiduciary Income Tax (Kaestner); S Corp. Ownership; Basis Step-Up Strategies

4.8 (19)

Steve Gorin, CPA

Thompson Coburn LLP

Monday, November 25, 2019 | 02:30 PM EDT

  • CPA
  • EA

1.5 Credits

$9

Subject Area

Taxes

Course Description

The U.S. Supreme Court decided Kaestner regarding a state’s ability to impose income taxation on a trust. We will discuss the holding and its context when trusts hold business interests. Recent regulations and rulings regarding S corporation ownership are worth noting. Finally, basis step-up is becoming more important than estate tax planning for many taxpayers; we will discuss trust modifications (including a possible formula general power of appointment) and other tools.

Learning Objectives

  • What Kaestner did and didn’t do regarding the constitutional limits imposed on state income taxation of trusts.
  • How state income taxation of business operations and sales of businesses affect trusts that own businesses.
  • How the government protects against revenue loss from recent changes expanding who beneficiaries of trusts owning S corporations can be.
  • When shareholder agreements governing sales of S corporation are or are not likely to violate the single class of stock rules, contrasting two 2019 private letter rulings.
  • Various strategies to plan basis when a beneficiary dies.
  • How one might consider including a formula general power of appointment to maximize basis step-up.
  • Whether a trust modification may trigger gift/estate/GST tax consequences.

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Accounting Practice Owners
  • Auditors
  • CPA (Industry)
  • CPA - Large Firm
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Enrolled Agent
  • Entrepreneurial Accountant
  • Entrepreneurial CPA
  • Others
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Practitioners
  • Tax Pros
  • Young CPA

Testimonial

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    [no_of_record] => 19
    [average] => 4.8421
)
 

4.8

(19)
84%
16%
0%
0%
0%