@patyan2001 wrote:The loss in the Bypass trust (long or short) can only offset the gain in the Bypass trust (long or short), it cannot pass though to my own account to offset my gain there even if the trust income is supposed to distribute to me and taxed with my tax ID (not taxed with trust ID).
That is exactly correct; the trust is a separate entity with gains/losses being netted at the trust level. Any net losses, however, cannot be distributed to the beneficiary(ies) until the trust terminates.
