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aljqa222
March 7, 2025
Question

How to allocation LT Capital Loss to a Trust Beneficiary

  • March 7, 2025
  • 1 reply
  • 0 views

Hi - 

I have a Complex Trust with 2 50% beneficiaries.   The Trust owns stock shares in one company.  One beneficiary sold stock during the year.  I see how to allocate dividends earned on stock in current year but not how to allocate LT loss from the stock sale.  How can I allocate the LT loss to a particular beneficiary and report on K1?

 

This is not the final year of the trust - the Trust agreement does allow for loss pass throughs.   

 

Many thanks in advance for any help!

1 reply

M-MTax
M-MTax
March 7, 2025
@aljqa222 wrote:

This is not the final year of the trust - the Trust agreement does allow for loss pass throughs.   

Regardless, the IRS does NOT allow for loss passthroughs to beneficiaries until the trust terminates and files its final return.

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