How are capital gains and Qualified Dividends taxed in a SNT Trust if they are not distributed
- posted
11 years ago
Trust - Capital Gains
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- posted
11 years ago
not distributed
Hard to say without seeing the governing document. However, as this is a Special Needs Trust (SNT) it is likely the document is silent on capital gains and dividends. Therefore, they would not be part of DNI and would be taxed to the trust. Form 1041 Shedule D has the worksheet for computing the trust's taxes using the maximum capital gains tax rate.
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- posted
11 years ago
are not distributed
What I actually was interested in was would they be taxed at the normal trust rate or do they get a reduced rate like 1040 taxpayers get. Also, do you know where I can get the rate structure.
- Vote on answer
- posted
11 years ago
are not distributed
rate or do they get a reduced rate like 1040 taxpayers get. Also, do you know where I can get the rate structure.