Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

If I am getting money from a trust that is taxed, do I also pay taxes on the money from the trust?

Generally, yes, but taxation of trusts is very complex, and the appropriate tax treatment will vary with the type and purpose of the trust and state law. A trust generally pays income tax on the income that it does not distribute. Usually this income is from capital gains, which are added to the trust's principal. The trust will usually distribute its ordinary income to the beneficiaries. The trust claims a deduction for this distribution, and the beneficiaries are taxed on it.

Edward C. Beyer, CPA, Rowles & Co. The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. To submit questions by e-mail and access an online tax guide, go to The Sun's Web site at www.sunspot.net/tax.

Selected questions will be answered in the Business section. No questions will be answered personally.

Pub Date: 3/10/99