Trust Types and Fiduciary Accounting
Trust classification and governing documents shape tax ownership, accounting income, distributions, and filing responsibilities.
Study this topicPart 2 / Businesses
Specialized Returns and Taxpayers
Apply the distinct rules for trusts, exempt organizations, retirement plans, farms, and rental activities while preserving the same disciplined return-preparation workflow.
12 focused lessons
Learn the rule, then work the decision.
Every lesson pairs a direct answer with a practical scenario, a common wrong turn, and a repeatable study action.
Distributable Net Income and Beneficiary Reporting
DNI limits and characterizes the income deduction for a trust or estate and the income included by beneficiaries.
Study this topicEstate and Trust Deductions
Fiduciary deductions depend on who incurred the expense, whether it is attributable to income or administration, allocation rules, and duplication restrictions.
Study this topicTax-Exempt Status and Applications
An organization must be organized and operated for an exempt purpose and follow the applicable recognition, governance, and ongoing-compliance process.
Study this topicForm 990 and Unrelated Business Income
Exempt organizations may have annual information returns and tax on regularly carried-on trades or businesses not substantially related to their exempt purpose.
Study this topicSmall Business Retirement Plans
SEP, SIMPLE, and qualified plans differ in eligibility, contribution, nondiscrimination, reporting, and correction requirements.
Study this topicProhibited Transactions and Plan Compliance
Retirement-plan transactions with disqualified persons can create excise taxes, fiduciary issues, and plan consequences; operational failures need structured correction.
Study this topicFarm Income and Expenses
Farm returns include sales, livestock, crop insurance, subsidies, conservation payments, inventories, and expenses with specialized timing and character rules.
Study this topicFarm Accounting and Estimated Tax
Farmers may have special accounting, income-averaging, and estimated-tax rules, but eligibility and timing must be tested.
Study this topicRental Real Estate Professional Status
Real-estate-professional status requires personal-service and participation tests and does not by itself make every rental nonpassive.
Study this topicPassive Activity and At-Risk Limits
Business and rental losses can be limited by basis, at-risk, passive-activity, and other rules in a required sequence.
Study this topicVacation Homes and Mixed-Use Rentals
Mixed personal and rental use affects classification, expense allocation, deduction limits, and reporting.
Study this topicTurn reading into retrieval
Test Part 2 with current IRS sample questions.
Use the free sample for immediate explanations, then continue with the PassFast question bank when you are ready for full coverage and performance reporting.