The Whitmer Trust operates a manufacturing business. When Whitmer incurs a net operating loss, the current-year deduction passes through to the income beneficiaries.

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The Whitmer Trust, as a separate legal entity, cannot pass current-year deductions directly to income beneficiaries. Trusts typically retain their income or losses within the entity, and specific distributions are made according to the trust agreement. Income beneficiaries receive distributions that may be derived from the trust's income, but net operating losses are handled within the trust itself and do not pass through directly to beneficiaries like in certain pass-through entities (e.g., S corporations or partnerships).

The Whitmer Trust Operates a Manufacturing Business