This webinar begins with an overview of the basics of income taxation of trusts and estates. The session will also provide a closer look at standards for making distributions and explain how the ideas of distributable net income (DNI) and fiduciary accounting income (FAI) interact.

Distributions can be made using ascertainable standards—health, education, maintenance, and support (HEMS)—or no standard at all. Our presenter will discuss when capital gains are included in DNI and when items that are not FAI are included in DNI. 

Learning Objectives: 

• Outline the basics of how taxable items are allocated to a trust/estate or its beneficiaries


• Determine how HEMS can be flexible and the estate and gift tax consequences of using HEMS or no standard 


• Define what items comprise DNI that is not necessarily FAI


• Identify when capital gains are included in FAI and how to distribute capital gains

This course follows content from the webinar, “Grantor Trust Rules,” which discusses when a trust is taxed to its grantor or other deemed owner instead of being subject to these rules. Attendees may want to familiarize themselves with the concepts discussed in that webinar.

NASBA Approved

CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222

EA Approved

CPAacademy.org (Sponsor Id#: HURS9) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222