Spoke to two CPA's today who specialize in Trusts. Both said that Capital Gains can absolutely be allocated to Corpus, but treated by the fiduciary as part of the distribution to a beneficiary, WITHOUT ACTUALLY BEING DISTRIBUTED to the beneficiary.
Which is also what is written in the Exception 2 in the excerpt that I posted.
Now, if this is correct, and you are not correct, but continue to state that you are, don't you think you are misleading many people who are looking for this information and find this thread?
