Is capital gain considered income to a trust?

Yes, capital gains are generally considered income to a trust, depending on the trust's structure and the specific terms outlined in its governing documents. If the trust sells an asset for more than its purchase price, the profit generated is classified as a capital gain and may be subject to taxation. The treatment of these gains can affect distributions to beneficiaries and the overall tax liability of the trust. Trusts should consult with a tax advisor to ensure proper reporting and compliance.