Parents put family farm in Trust belong to their 3 children. The trust leases land to a 3rd party and reports the income. The parents continue to pay the utilites and tax for the farm. Can the trust take those deductions if paid by parents?
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I don't think they can deduct these expenses unless this is a revocable trust. Why would they pay utilities if trust gets the income? Well, I have a old farmer like that, who says: to help the children out. -
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They put the land in a trust for the children, but still do not want them to have to make all payments yet. They just want to help them out. Kids don't want to deal with any of it yet.Comment
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Kind of trust
Please tell us what kind of trust it is.Comment
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Important to know what kind of trust this is as mentioned above. Who is the trustee? What does the trust do with the rental income? Is it distributed? If property has been put into a trust, then the taxes and utilities should be in the trust's name also. Get the trust document.Comment
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