Can a rental property in a Trust depreciate the cost of beneficiary's labor for capital improvements made to the rental property? Thank you.
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Only if Beneficiary claims labor income on his personal tax return. A1099nec should be filed by trust to beneficiary.This post is for discussion purposes only and should be verified with other sources before actual use.
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Thank you Bob. I have a follow-up. He did not charge the Trust for his labor and was not paid so no 1099 nec. He just included the valus of his time for the work he did along with cost of materials. I suppose this would disqualify adding his labor cost to the basis? Appreciate your time.Comment
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Yes. No 1099NEC no labor basis.Originally posted by Sudhir View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
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Bob, thank you again.Comment
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