<< In other words, if there is nothing left after distributions to the "fixed beneficiaries", then they receive all of the final year deductions. >>
Are you referring to the hypothetical that I thought you told me to stop addressing? To be clear, the reality is that there was money left for the variable beneficiaries. So, the question I have remains the same. Do the fixed beneficiaries have zero tax consequence when there is no interest or dividend income and merely a condo that sold for less than it was FMVd at, whose proceeds sat in a no interest bank account for several months before being distributed in almost their entirety?
