Generally, capital gains are allocated to fiduciary income, because they arise from current-year transactions as directed by the trustee.

Name: Generally, capital gains are allocated to fiduciary income, because they arise from current-year transactions as directed by the trustee.
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Capital gains are typically allocated to the corpus or principal of the trust, not to fiduciary income, unless the trust document specifically directs otherwise or state law allows for such allocation to income.

Generally, Capital Gains Are Allocated to Fiduciary Income, Because They