Insurance paid on a home that is in an Irrevocable Trust
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Yes, such as whether this is a grantor trust, and why a personal home is in it; or a trust which became irrevocable at the prior owner's death, etc. Some time ago, many TP's tried to put their personal homes in an irrevocable trust to deduct all the expenses, but these were determined by the IRS to be abusive trusts and not allowed, as the trust had no other purpose. Who is (are) the beneficiaries of the trust? Do you have the trust document which details what it is allowed to pay for and who gets the income from it? Is the home rented out for income? -
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Insurance paid on a home that is in an Irrevocable Trust
Client has their home in an irrevocable trust.
The trust paid the taxes on the home and the house insurance.
Can I take BOTH of these expenses on the 1041?
I do believe I can take the house taxes but how about the house insurance..
Many thanks,
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