[WSBAPT] dumb tax question

[Philip N. Jones]

With a few exceptions, the capital gain will not be carried out to the beneficiaries unless the sale by the trust takes place in the final tax year of the trust.
Phil Jones

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Mike Zeno <mikez at zenolawfirm.com>
Sent: Thursday, December 8, 2022 5:19:35 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] dumb tax question


Friend/client could either have the estate sell property or distribute it and sell it himself.  Property has appreciated since date of death, so there will be gain.  I know trust/estate brackets are compressed, so it may be better to distribute and then sell so that the capital gain is taxed on the beneficiaries’ returns.  But, maybe it makes no difference, because distribution of sales proceeds will be DNI and will carry the capital gains out to the beneficiary returns anyway?  Does anyone know the answer?



Any assistance is appreciated.



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