Here are the details

(1) Father lives in one unit.
(2) The other unit is occupied by a tenant paying fair market rent ($1000/month).
(3) Father was the owner of the house.
(4) Father transferred ownership of the house into an irrevocable trust.
(5) His adult son is the trustee.
(6) His adult son is also the beneficiary.
(7) The son/trustee/beneficiary is not living in the house.
(8) Father is still living in the house.
(9) Father is supposed to pay 837 a month in rent but paid about $600/month.
(10) The trust started in April 2012.
(11) It was transferred on the deed at a price of $1
(12) The father has no power to change anything.
(13) There is a bank account and federal ein for the trust.
(14) The house was not appraised after the transfer.

I am assuming I would file a 1041 with a schedule e and K-1 but nothing would flow through to the son's income tax return. The trust would pay all the taxes. I would fully depreciate the house but at what value? Someone had said I continue the depreciation from where it was left off. It has been rented to an upstairs tenant since 1991. It is approaching full depreciation. Please advise.