Deprication on a rental property that is in a trust

5 Replies

Typed this up on my phone.. Title should read Depreciation***

I am a 42.5% beneficiary of a trust in which a rental property is currently being held. I would like to be able to write off the depreciation expense from my personal income. Is this possible?

I would think you can write off the portion that you own.
Commercial is 39 years.
Residential is 27.5 years

You need to ask your CPA about this.

That was my assumption as well, assuming the depreciation isn't being allocated to the trust. I'll have to speak to our CPA. 

What type of trust is this, and what are the trust terms? Trusts vary widely in how they report for both fiduciary and Federal tax purposes. You should pull the trust agreement and read it, that would be the place to start.

@Christopher Smith  My sister has all the paperwork so I'll be meeting with her to read through it all tomorrow. I'll update this post once I have some information to work off of. 

Too many knowns to answer the question. If the Trust files a Form 1041 and is not a grantor trust, then the depreciation is at the trust level, and any taxable income will flow through to you on a K-1. If this is a grantor trust (ex: Revocable Living Trust), then all income/expenses are reported on the grantor's individual income tax return. 

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