When a trust distributes an in-kind asset with a realized loss, most likely this loss should be allocated to and immediately deducted by the first-tier beneficiaries.

Question

Quizplus · Accepted Answer

In-kind distributions of assets with a realized loss are typically not deductible by beneficiaries. The loss is generally recognized at the trust level and may not be passed through to beneficiaries.

When a Trust Distributes an In-Kind Asset with a Realized