@Steelydan989 wrote:
You are correct that this is not a simple trust but is a complex trust. So, for future reference, you're saying I could have allocated $38,000 taxable income to the beneficiary and offset the remaining $3,000 in the trust with the loss carryover?
(emphasis added)
Just to be clear here. You could have distributed $38k (not $41k like you did) to the bene and then offset the other $3k of trust income will the capital loss. (using the calculation @Anonymous_ walked you through to allocate the qual divs -- TT business will do that calc for you). [Assuming the trust allows you to do so, as it appears from your description.]
Sometimes you can just allocate (without distributing) income or deductions to a bene, but are special circumstances and I don't think they are common. (E.g. amounts permeantly set aside for charitable purposes).
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