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Get your taxes done using TurboTax
You should enter $17,000 because that should be the trust's accounting income.
The program, frankly, encounters issues in this exact type of situation (i.e., where there is a loss, that technically cannot be distributed until the trust is terminated, combined with a larger gain that the trustee has the discretion to distribute). The loss offsets the gain, but the issue is attributing the exact amount to the income (it ignores the loss).
‎February 21, 2020
9:51 AM