trus

[gman]

Parents house and land put into trust. Farm rent is paid on land.

Repairs, insurance, taxes paid on house by trust. The trust files tax return. Is it allowed to take the expenses on the home that belongs to the trust. Parents still live in the house..

thanks

[Burke]

No, if this is a Revocable Living Trust. The trust does not even file a tax return. All goes on grantors' 1040. If it is an Irrevocable Trust, and the house is deeded to the trust, it can pay all expenses, and it may file a tax return if there is other income requiring it to like the farm rent, but it cannot deduct anything more than the grantors' could -- i.e, mortgage interest and real estate taxes, period. Unless it is income-producing property (like residential rental), nothing else is allowed. And since they still live in it, it cannot be considered residential rental property.