Real estate sale in a trust

We have land in simple trust that is sold. The trust instrument states to distribute as principal. Does the trust itself pay the tax? I think that makes sense since the document said to distribute the sale as principal (I would assume gain and all because the remainder beneficiaries are the same as the income beneficiaries). If the trust distributed all the income they shouldn’t have to pay any tax on that gain because their tax rate is below the threshold?

if you are distributing that gain as pricinpal it seems to me it shouldn’t be reported as DNI?

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