Have a Tax Question? Ask a Tax Expert
Thanks for your question.
Yes, they are different. The 2009 long-term capital gain tax rate for trusts is a flat 15%. The rate for individuals is 0% for those in the 15% and lower marginal income tax brackets and 15% for those in the 25% and higher marginal tax brackets.
If the capital gain is not distributed to a beneficiary, the trust's tax rate (Form 1041) applies. Any portion distributed is reported on a Schedule K-1 to the beneficiary and taxed at the individual's rate.
Short-term capital gains are taxed as ordinary income and taxed at the marginal tax rates for both trusts and individuals. Collectible gains are taxed at 28% for both also.
For more information, see 2009 Instruction 1041 Schedule D
Hope this helps,