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Which of the statements below regarding the net capital gain or loss of a trust is NOT correct? A) In the final year of a
Which of the statements below regarding the net capital gain or loss of a trust is NOT correct? |
A) | In the final year of a trust or estate, any unused capital loss carryover is passed through to the remainder beneficiaries and keeps its original character. |
B) | Net capital gain is typically allocated to corpus, although it can be allocated to income if permitted by the trust instrument or local law. |
C) | Net long-term capital gain of a trust or estate is taxed at the same capital gains rates that apply to individuals. |
D) | Net capital loss is allocated to corpus, except in the final year of the trust or estate. |
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