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In the absence of one, I would do as you suggest, reporting CG=$0 until the last distribution of the UIT, at which time you'll recognize all of the gain or loss.

Doesn't this reduce the basis in the UIT by the amount received? (I find UIT's confusing, and am yet to find a very clear explanation of how things work.)

I should have been clearer. That's exactly what I meant...treat the cash purely as a return of principal. This reduces the basis. When the basis reaches $0, any additional distributions become capital gains.

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