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<div>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.</div>
<div dir="ltr">Phil Jones</div>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Mike Zeno <mikez@zenolawfirm.com><br>
<b>Sent:</b> Thursday, December 8, 2022 5:19:35 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] dumb tax question</font>
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<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#002060">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.
<b>But, </b>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?</span></p>
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<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#002060">Any assistance is appreciated.</span></p>
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<p class="x_MsoNormal"><b><span style="color:#1F497D">The Law Office of G. Michael Zeno, Jr., P.S.</span></b></p>
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