I am going in circles on expenses for a vehicle owned by a now irrevocable trust used 100% personally. I believe personal property taxes can be deducted on the 1041 but I am trying to figure out if the accounting income would be reduced by all expenses for the vehicle. That does not seem right. Same goes for personal residence. Would f.e. utilities be part of the accounting income?
In my simple mind assets either belong to a trust or they don't. If they belong to the trust all associated expenses should be deducted from the accounting income but somehow that does not feel right. I do not have problems what I can deducted on the 1041 but I need to get the income required to be distributed right. What am I missing? I have a big folder from a Gear-up seminar that does not address this issue.
In my simple mind assets either belong to a trust or they don't. If they belong to the trust all associated expenses should be deducted from the accounting income but somehow that does not feel right. I do not have problems what I can deducted on the 1041 but I need to get the income required to be distributed right. What am I missing? I have a big folder from a Gear-up seminar that does not address this issue.
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