Refer to Problem C:14-42. How would your answer change if instead the trust were a complex trust that makes no distributions in 2022 and 2023? Assume the trust earns \($8,000\) of corporate bond interest income each year

Question 14-42

A simple trust had a long-term capital loss of \($10,000\)  for 2022 and a long-term capital gain of \($15,000\) for 2023. Its net accounting income and  DNI are equal. Explain the tax treatment for the 2022 capital loss assuming the trust is in existence at the end of 2024.