Accountant-Man
Level 13
06-25-2024
06:49 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"Simple" trusts generally require distribution of all "income," which means interest, dividends, rental income, etc. less expenses, but does NOT include capital gains, which are corpus not income.
Therefore, the typical simple trust shows interest and dividends on the K-1 to the beneficiary and the CGs are taxed to the trust.
This is not double taxation.
** I'm still a champion... of the world! Even without The Lounge.