The enactment of the Small Business Job Protection Act of 1996 expanded the differences in grantor trust rules for foreign and domestic trusts. At the same time, it narrowed the distributable net income (DNI) computation rules for foreign trusts. These changes leave little room for interpretation — with one major exception. Professionals are still debating if a foreign trust can carry over a net capital loss for the current year.
My view is that taxpayers should be able to compute a f