Deductions on Joint 1040 for Family Property Trust Upkeep Expenses

Forum|Forum|1 year ago
May 22, 2024
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If my husband manages a property trust and we as a household pay for the upkeep expenses on the property- how exactly do we deduct the expenses associated with administering over the trust? The 1040 puts a cap on deductions (only allowing % of our AGI as joint filers, whereas the 1041 has no cap on those deductions)

. So how do we capture/realize these expenses/deductions on our joint 1040?

Ask the Experts - Biz Tax - May 2024

mirthaguer

Generally if you form a trust and transfer your home to the trust as long as you keep the ability to make changes the i s called "grantor trust" and is ignored for tax purposes. The income and deductible expenses are deducted by the grantors. The fact that you transfer a property to a trust does not make the expenses in connection with the property deductible You can deduct the same expenses you could deduct when you had title to the property such as real estate taxes paid and interest, etc. You cannot deduct personal expenses such as painting home, etc.