QSST Qualified Subchapter S Trust Question

[Brett Roth]

I have a tricky one for any of the tax gurus that would like to take a stab at it.  

Here's a situation.  S-Corp stock is held in a QSST (Qualified Subchapter S Trust) and the S-Corp stock will generate a loss for the year.  Let's assume active loss, but I'd be curious about passive losses also and if there is a difference there.   CPA thinks that the losses are not passed through to the Trust beneficiaries tax return but instead are held by the trust.  I'm thinking CPA is confused on the specifics of QSST's and is thinking about some other sort of trust maybe.  I'm thinking CPA might not be correct because the whole point of a QSST is that the S-Corp stock still behaves like an S-Corp and is a pass through entity for profits and losses even though it is held in trust.  The losses are attributed to the S-Corp stock and to keep things simple lets assume the trust holds no other assets.   Am I right?  Those losses should pass through to the the beneficiaries individual return?   Thoughts?

thanks

Brett