The Raven Trust was terminated this year and David, the beneficiary of the corpus, received all of the trust assets.The trust had a $10,000 net operating loss; this was the only tax year in which the trust operated a business.The entity has one income beneficiary, Flo.As a result of these transactions:

Question

Quizplus · Accepted Answer

As the beneficiary of the trust assets, David is responsible for claiming the trust's NOL on his personal tax return (Form 1040). Flo is not entitled to claim the NOL because she did not receive the trust assets upon termination.

The Raven Trust Was Terminated This Year and David, the Beneficiary