tailieunhanh - Accountants’ Handbook Special Industries and Special Topics 10th Edition_17

Tham khảo tài liệu 'accountants’ handbook special industries and special topics 10th edition_17', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 41 -18 ESTATES AND TRUSTS EGTRRA has modified the income tax rules relating to the step-up in basis discussed above beginning in 2010. To make up for the loss of revenue from the estate tax repeal a new carryover basis regime will become effective. Under this regime property acquired from a decedent will have a basis equal to the lesser of the decedent s basis or the fair market value of the property on the date of the decedent s death. A total million of property may however still qualify to use the current step-up in basis rules. Up to 3 million of property passing to a surviving spouse plus up to an aggregate of 1 300 000 of property passing to any beneficiaries will qualify for a step-up in basis. These new rules sunset after 2010 resulting in the modified carryover basis rules ending and the current step-up in basis rules being reinstated in 2011. So just in case we should all start keeping better records in order to accurately reflect our tax basis in the assets we hold currently. Estates must now make quarterly estimated tax payments in the same manner as individuals except that an estate is exempt from making such payments during its first two taxable years. Accordingly the penalties for underpayment of income tax are applicable to fiduciaries. Some states also tax the income of estates and the representative must see to it that such state statutes are complied with. ACCOUNTING FOR ESTATES a GOVERNING CONCEPTS. The general concepts governing the accounting for decedent s estates are for the most part similar to those applicable to trusts but there are some differences. The underlying equation expressing the accounting relationship is assets accountability. However the representative is concerned not with the long-term management of property for beneficiaries but rather with the payment of debts and the orderly realization and distribution of the estate properties. The collection and the distribution of income are incidental to the main function of