Liquidating trust and capital gain and tax

by  |  17-Sep-2019 03:46

Also, to the extent that capital losses exceed capital gains, you can deduct the losses against your other income up to an annual limit of ,000.

Any additional loss above the ,000 threshold is carried over to be used in subsequent years.

liquidating trust and capital gain and tax-63

to liquidate and distribute assets of the debtors in the Res Cap bankruptcy case.

The Liquidating Trust, through its agents, shall wind down the affairs of and dissolve the Debtors and their subsidiaries including the Non-Debtor subsidiaries.

With more assets held in trust and higher marginal tax rates, many clients and advisers are now considering distributions from trusts to beneficiaries as a way to shift the tax burden to individuals in lower tax brackets.

However, under the traditional definition of fiduciary accounting income (FAI), capital gains are typically excluded from distributable net income (DNI) and, thus, are taxed at the trust level.

The implementation of the Uniform Principal and Income Act of 1997 (UPAIA) and the 2004 revisions to the regulations under Sec.

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