by the way in a simple trust capital gains are genearlly not distributed to benes just ordinary income. However since i can't see the trust document i can't say for sure however from IRS instructions for 1041
Simple Trust
A trust may qualify as a simple trust if:
1. The trust instrument requires that all income must be distributed currently;
2. The trust instrument doesn't provide that any amounts are to be paid, permanently set aside, or used for
charitable purposes; and
3. The trust doesn't distribute amounts allocated to the corpus of the trust.
capital gains are corpus. s if you been distributing them then you have a complex trust.
