When a trust incurs a net operating loss,the current-year deduction passes through to the income beneficiaries.

Name: When a trust incurs a net operating loss,the current-year deduction passes through to the income beneficiaries.
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A net operating loss (NOL) incurred by a trust does not pass through to the income beneficiaries. Instead, the trust carries the NOL forward or back to offset its own taxable income in other years.

When a Trust Incurs a Net Operating Loss,the Current-Year Deduction