A trust can sell appreciated assets and distribute the cash without automatically shifting the capital gain to the beneficiary. Learn when capital gains stay taxable to the trust, when they enter distributable net income, and what trustees and beneficiaries should review before a distribution.

California business owners and nonresident investors face complex rules involving income sourcing, nexus, partnerships, S corporations, and business sales. This updated guide explains California multistate taxation and the important 2026 OTA decision rejecting the FTB's Section 751(a) partnership interest sourcing position.