I am the managing trustee and co-benefifiary of a trust, of which the only asset is land subject to a 99 year lease. The lessee is going to purchase the land (and the lease) for a sum that will result in a large capital gain for the trust. For trust construction reasons not germane to to this querey, the proceeds cannot be distributed to the beneficiaries, and thus must remain in the trust.
Queries: Does the capital gain qualify for max 15% taxation to the trust?
If the proceeds are invested in stocks providing qualified dividends, are said dividends taxable at max 15% to the beneficiaries to whom they are passed through?
Thank you for your help
Bill Brenner