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

4.9 (17)

Steve Gorin, CPA

Thompson Coburn LLP

  • CPA
  • EA
  • CTEC
  • AFSP

Credits: 1.5 CPE | 1 CE


Subject Area


Webinar Qualifies For

1.5 CPE credit of Taxes for all CPAs

1 CE credit of Federal Tax Law for 2021 Annual Filing Season Certificate program( IRS Approved : GEHNZ )

1 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ )

1 CE credit of Federal Tax for Maryland Tax Preparers

1 CE credit of Federal Tax for Oregon Tax Preparers

1 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273)

1.5 General Educational credit for Tax Professionals / Bookkeepers / Accountants

Before starting this self study program, please go through the instructional document.


  • What is State Fiduciary Income Taxation - Kaestner 1992 Family Trust Case?2 mins
  • State Income Taxation of Business Income - How did State Income Taxation of Business Income get influenced with business investment income?13 mins
  • Which are the key Recent Developments in S Corporation Ownership and Shareholder Agreements?41 mins
  • How to get Basis Step-up?71 mins
  • Key tools to cover basis step-ups75 mins
  • Which are the tax consequences of modification?83 mins
  • Important considerations for General Power of Appointment91 mins
  • Consequences of Trust Modification100 mins
  • Query session102 mins

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.

Who Should Attend?

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