Refer to Problem 14-42. How would your answer change if instead the trust were a complex trust that makes no distributions in 2012 and 2013? Assume the trust earns $8,000 of corporate bond interest income each year.
In problem 14-42
A simple trust had a long-term capital loss of $10,000 for 2012 and a long-term capital gain of $15,000 for 2013. Its net accounting income and DNI are equal. Explain the tax treatment for the 2012 capital loss assuming the trust is in existence at the end of 2014.