Trust distribution and closure

[chadw]

Complex trust was set up for nephew. The stock within the trust was sold in 2007 and distributed to the beneficiary at the same time. The amount distributed to the bene. will be taxable as long term capital gain to him correct or can the fiduciary take on the gain if he wishes?

Thanks

[ed_accountant]

The trust should file a final 1041 and issue a final k-1 that distributes the gain to the beneficiary. The trust will not pay the gain. In the final year when all the trust holdings of the trust are distributed so is the income through the K-1. The trust has a mandatory filing of 1041 if there is income or sales greater than $600.