Chapter 12: Trusts & Tax-Exempt Organizations

In this section

• Simple vs. Complex Trusts, Grantor Trust Rules
  Explore how income flows through simple and complex trusts, key distribution requirements, and essential reversionary powers causing grantor trust status for CPA exam readiness.
• Fiduciary Accounting Income & Distributable Net Income
  Master key concepts of fiduciary accounting income, trustee authority over principal vs. income, and line-by-line DNI computations to excel in the CPA Exam’s Tax Compliance & Planning section.
• Charitable Entities, §501(c)(3) Requirements & Private Foundations
  Explore the essentials of achieving and maintaining tax-exempt status under §501(c)(3), the operational and organizational tests, Form 990 compliance, and private foundation excise tax rules in the context of the Uniform CPA Examination (TCP).
• Unrelated Business Income & Exceptions (Volunteer Labor, Research)
  Discover the intricacies of Unrelated Business Income (UBI) for tax-exempt organizations, focusing on volunteer labor, research exceptions, net operating losses, and fragmentation rules through comprehensive analysis and real-world examples.