ITR Utilities Pro2018 学习指南说明书

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LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
PPC’s Guide to Uses and T axation of Trusts
Twentieth Edition (May 2018)
The following are some of the important update features of the May 2018edition of PPC’s Guide to Uses and Taxation of Trusts :
¯The discussions throughout this Guide have been revised to provide the latest guidance on the 2017T ax Cuts and Jobs Act (TCJA),including—
¯¯increased basic exclusion amount (it was doubled for years 2018–2025),
¯¯disallowance of miscellaneous itemized deductions subject to 2%of AGI limitation,¯¯availability of charitable contribution deduction,¯¯qualified business income deduction availability,¯¯change in the way the kiddie tax is computed,¯¯the new rules for alimony,
¯¯eligible trust shareholders of an S corporation,and ¯¯effective dates.
In addition to these featured items,the Guide includes the following update
items:
Chapter
Substantive Changes
and
Additions
Reference Chapter 1
Overview of How Trusts Are Used 1.Naming a trust beneficiary as sole trustee can impact the trust’s spendthrift provisions,as discussed in this edition.
Section 105
Chapter 2
Transfer T ax Planning Using Trusts
1.Expanded the discussion of transfers to a generation skipping transfer (GST)trust,including adding an exam-ple illustrating how the automatic GST tax exemption is allocated.Section 201
Chapter 3
Fiduciary Accounting Income
1.The effect fiduciary accounting income and DNI has on taxable income reported by a beneficiary is illustrated.Section 301
2.The discussion on allocating income tax between princi-pal and income for a trust’s share of pass through income was clarified.
Section 303
xtrsub
Chapter4
T axation and Filing Requirements 1.A new worksheet for computing distributable net income
was added.
Appendix4A
2.A new appendix was added that lists items included in
fiduciary accounting income and in distributable net
income.
Appendix4B
Chapter5
Using Grantor Trusts 1.Expanded the discussion of persons other than a grantor
being treated as the owner of a trust with a discussion of
a beneficiary deemed owner trust(BDOT).
Section508
2.GRATs are an attractive wealth transfer vehicle.Enhanced
the discussion with an example of a zeroed-out GRAT.
Section510
Chapter6
Trusts for Nonspouse Family Members 1.Enhanced the discussion of basis step-up with a method
of upstream planning that involves gifting to elderly
parents.
Section600
2.Highlighted a planning strategy of shifting ownership of
a residence into multiple non-grantor trusts to bypass the
new TCJA$10,000limitation on state and local tax
deductions.
Section600
mented that Section2503(c)trusts are sometimes
used in place of Section529plans to save for college
because of their flexibility.
Section601
Chapter7 Marital Trusts 1.If transfers were previously made to a same-sex spouse
and that transfer resulted in a reduction of the donor’s
available applicable exclusion amount or the GST tax
exemption amount,there is a procedure to restore the
exclusion amount used as discussed in this edition.
Section701
2.A new simplified method for extending Form706to make
the portability election on a nontaxable estate is available,
as discussed in this edition.
Section701
3.Clarified the income tax consequences of a SLAT.Section702
4.Added basis adjustment information to the marital trust
flowcharts.
Appendixes7B
and7C
Chapter8
Life Insurance Trusts 1.A discussion on two private letter rulings where the IRS
ruled on the tax consequences of a judicial reformation of
an ILIT has been added.
Section801
2.Discussed conclusion in the Yenchi case and its impact
on a financial advisor’s fiduciary duty to the purchaser.
Section804
Chapter9 Charitable Trusts 1.Added a planning tip for contributions to a charitable lead
trust(CLT)as a result of the TCJA.
Section901
2.A new appendix was added summarizing the difference
between a CLAT and CLUT.
Appendix9F
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Chapter10 Trusts as S Corporation Shareholders 1.The definition of potential current beneficiary for ESBTs
has changed,as discussed in this update.
Section1003,
Appendix10B
Chapter11 Asset Protection Trusts 1.The list of states that now have self-settled spendthrift
trusts has been updated.
Section1102
2.The TCJA brought new planning considerations for using
INGs.A planning tip was added in this update.
Section1103
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