Trust Tax Fundamentals 7:
Taxation of Capital Gains 

  • Instructor: Clint Bentz
  • Level: Basic
  • CPE Credits: 4.4 
  • Field of Study: Taxes
Who should attend? Public and private accountants and tax preparers serving clients in the US.
Watch the course overview video to learn more!
Trust Tax Fundamentals 7: Taxation of Capital Gains provides essential guidance for one of the most complex and frequently misunderstood areas of fiduciary taxation: capital gains treatment. As the seventh installment in our comprehensive Trust Tax Fundamentals program, this course clearly outlines how capital gains are recognized, allocated, and taxed within trusts and estates, equipping fiduciaries with strategies to optimize tax outcomes for both trusts and beneficiaries.

Led by Clint Bentz, CPA, a recognized expert in trust and estate taxation with over 35 years of experience, this course starts with foundational concepts, clarifying how gains and losses are calculated, classified, and reported under the Internal Revenue Code. You'll examine critical elements such as holding periods, cost basis adjustments, wash sale provisions, and capital loss limitations, ensuring you understand precisely how these rules affect trust taxation.

The course delves deeply into IRS Regulation 1.643(a)-3, addressing the critical question of when capital gains can be included in Distributable Net Income (DNI) and distributed to beneficiaries. You'll explore scenarios including mandatory income allocation, consistent trustee treatment, and actual distribution rules, as well as their implications for beneficiary taxation. You’ll also master the intricacies of the Net Investment Income (NII) surtax, developing skills to accurately compute NII and its allocation between trusts and beneficiaries.

Furthermore, you'll learn practical methods for managing capital gains through total return strategies, including the use of the power to adjust and unitrust conversions. Real-world examples will demonstrate how trustee decisions under both the Uniform Principal and Income Act (UPIA) and the Fiduciary Income and Principal Act (FIPA) significantly impact trust and beneficiary tax liabilities.

By completing Trust Tax Fundamentals 7, you’ll gain the analytical tools and practical know-how to navigate complex capital gains scenarios with confidence, enabling you to effectively minimize tax burdens and uphold fiduciary responsibilities.

See the Course Overview & Introduction below for more details and the detailed Learning Objectives. 

Clint Bentz Consulting LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
Lesson series
This is an on-demand, QAS Self Study course.

This is the 7th course in the Trust Tax Fundamentals Program.
Trust Tax Fundamentals 1, 2, 3, 4, 5, & 6 are pre-requisites for this course.

Students must complete all learning activities and achieve a minimum score of 70% on the final assessment to earn CPE credit for this course.

A CPE certificate will be issued at the completion of the course.

Access to this course will expire 12 months after date of purchase per NASBA requirements.

This course is current for tax law in effect following the passage of the OBBB.

Publication Date: November 2025
Revision: 2025 Tax Year
Review Date: November 2025
  • Video time:  2.75 hours
  • 1 Comprehensive Assessment (must pass with 70% or higher to earn CPE credits)

Course contents

Meet the instructor

—

Clint Bentz

Managing Member, Clint Bentz Consulting LLC
Clint Bentz is a managing member and lead instructor at Clint Bentz Consulting.
For over 35 years, Clint has been helping families with their estate and succession planning, as well as providing continuing professional education to tax professionals, attorneys, bankers, trust officers, and lay audiences on a broad range of income and estate tax issues, as well as training advisors on how to keep family-owned businesses with succession.
Clint is the primary author of the Ties to the Land curriculum published by Oregon State Extension Service and the OSU Austin Family Business Program.