What if the capital gain is a distribution/reinvestment within a mutual fund? Same approach? (Mutual funds distributed/reinvested capital gains at the end of the year after my Mom's death so I need to zero that out of her 1040 and let the accountant reflect it on her estate's 1041.) As you observe: interest/dividends: easy; mutual fund reinvestment of tax-exempt income and capital gains, no so.
