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Sponsored by Lorman Education
Product ID: 409849EAU
 
Credit & Course Provided by:

Preparing Philanthropic Clients for Tax Season

OnDemand Webinar (99 minutes)

Gain a better understanding of each excise tax and how items related to those excise taxes are reported on a private foundation's return.The excise taxes applicable to private foundations are difficult and confusing, and private foundation tax returns are riddled with traps for the unwary. Mistakes on form 990-PF can cost a private foundation and the foundation's managers dearly. This course will guide those advising private foundations and those preparing private foundation tax returns through challenging topics such as the taxes on net investment income, undistributed income, self-dealing, taxable expenditures, and more. This material will provide you with an understanding of each excise tax and how items related to those excise taxes are reported on a private foundation's return. We will also review the most common mistakes that we have found on private foundation tax returns to ensure that you do not make those same mistakes. This information is critical for anyone preparing a private foundation tax return or anyone representing a private foundation.

Authors

William A. Stetson, Finley Stetson

Agenda

Net Investment Income Excise Tax - SEC. 4940

• What Is and Is Not Net Investment Income?

• Deductions

• Qualifying for Reduced Tax Rate

• Common Mistakes

• Reporting Net Investment Income on Form 990-PF

Undistributed Income Excise Tax - SEC. 4942

• Calculating the Minimum Distribution Requirement (the 5% Rule)

• What Are Qualifying Distributions?

• Effect on Current and Following Tax Years

• Common Mistakes

• Minimum Distribution Requirements on Form 990-PF

Reporting Violations of Private Foundation Rules - Chapter 42

• Self-Dealing (§4941); Minimum Distributions (§4942); Excess Business Holdings (§4943); Jeopardizing Investments (§4944); and Taxable Expenditures (§4945)

• How to Complete Part VII-B

• Common Self-Dealing Mistakes

• Understanding the Excess Business Holdings and Jeopardy Investment Rules

• Common Taxable Expenditure Mistakes

• Form 4720 Penalty Returns

Private Foundation Activities - Part VII-A

• Reporting Changes to Organizational Documents

• Unrelated Business Gross Income

• Reporting Substantial Contributors