Rawbaws,Example:Rental Income = $200Expenses = $50Net profit =...

Rawbaws,

Example:

Rental Income = $200
Expenses = $50

Net profit = $150

This is distributed and you pay tax on $150 that's pretty simple right?

If the trust does the above but also sells a property and makes $50 Gain then you also pay tax on the $50.

Then your distirbution statement has:

Distribution $150
Capital Gain $50
Total distribution $200

I know it's simple and silly numbers but you get the picture?

Note: I am not saying I am right. I am merely saying this is my understanding. We find out next Friday....