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The distribution from the irrevocable trust may be taxable or not taxable, The taxable part may be partly capital gain and partly an ordinary income.All depends on circumstances.For instance - if the trust sells a capital property , realize capital gain and passes that gain to beneficiaries - that will be reported as capital gain on K1.
However - if the trust received interest income - and that income is passed to beneficiaries - that will be ordinary income.
If the trust has NO income - and distribute the corpus - that would not be taxable.
It is possible that the trust receive not taxable income - in this case that income will be passed to beneficiaries as not taxable as well.
So - the character and type of income which the trust passes to beneficiaries would not change.