Bob Kamman:

I love your response!  Sorry about the errors - I do my best to get things right but clearly got those two words wrong when referring to the UPIA.  

I'm glad to learn that:   "federal computation of DNI doesn't rely on state law except perhaps when assigning capital gains to income or principal.  Each case is based on its own facts and circumstances. Allocations are the decision of the trustee, not the preparer. " 

In this case I am both preparer and a co-trustee, and given what I know about the trust I'm confident the capital gains (losses) don't need to be allocated to principal.     

Thank you 🙂