Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
Hello
I have a real estate trust that owns two income producing properties. The trust usually disperses net income to beneficiaries so it does not have to pay trust income taxes.
The trust produces about 150k gross income and has a 450k line of credit. The trust is about to acquire another property with cash no financing.
How can I renovate the property with the trust income and credit but avoid the trust income taxes?
but, sounds like the trust already passes the income thru to the bene, who pays (may pay) the taxes. Why would the trust pay tax on the purchase of a property?
The trust is not paying a tax on the the purchase.
I am trying to figure out a way where I can utilize the trust income for the renovations but not be taxed on the trust income, if this is even possible.