For a simple trust, can capital gains distribution from a 1099-DIV be retained in the trust as a long-term capital gain, and how to do that with Turbotax Business 2016?

and not distributed to the sole beneficiary on K-1

A Simple Trust may be able to retain capital-gain if the trust document allocates capital gain to corpus. Click here for the IRS webpage on this subject and click here for a Turbotax article with the appropriate citation.

@Guy500