I am the trustee of a trust that allows me to assign capital gains to be taxed at the beneficiaries, let them be taxed in the trust, or allow a combination of the two at my discretion. This year I would like to allocate a portion of the total capital gains to the beneficiaries. If the trust's total long term capital gains is $50K and I want to allocate $20K of that to the beneficiaries, what values do I put in the fields "Allocation of Long-Term Gain - Total Long-term gain" and "Enter Gains Attributable to Income - Capital Gains Attributable to income"? Would it be $20K and $20K? This is part of a strategy to minimize taxes from the trust and personal returns combined.
@davidsgibson wrote:
...I want to allocate $20K of that to the beneficiaries, what values do I put in the fields "Allocation of Long-Term Gain - Total Long-term gain" and "Enter Gains Attributable to Income - Capital Gains Attributable to income"? Would it be $20K and $20K?
That is correct; $20,000 and $20,000 for both fields if you want to allocate and distribute that amount to your beneficiaries.
@davidsgibson wrote:
...I want to allocate $20K of that to the beneficiaries, what values do I put in the fields "Allocation of Long-Term Gain - Total Long-term gain" and "Enter Gains Attributable to Income - Capital Gains Attributable to income"? Would it be $20K and $20K?
That is correct; $20,000 and $20,000 for both fields if you want to allocate and distribute that amount to your beneficiaries.