Who receives the tax deduction benefits when home is held in trust, but I live in it and pay for property taxes, maintenance, et

Asked 9 months ago - San Francisco, CA

I have the option to reside in my parents home (both deceased) which is held in an irrevocable trust. The trust mandates I pay property taxes, maintenance, repairs, and utilities (there is no mortgage). The home won't transfer to me for 10 years. If the trust owns the property, but I pay all these costs, who gets the tax deductions/benefits? It seems the trust would, since it owns the home, not me.

Attorney answers (3)

  1. David L. Carrier

    Pro

    Contributor Level 18

    7

    Lawyers agree

    Answered . I think the trust would get the deductions, but would then "K-1" them to you so you would get the ultimate benefit. Ask your CPA...

    This is not legal advice. I am not your lawyer. You are not my client. You cannot rely on my response to your... more
  2. Michael Leo Potter

    Contributor Level 19

    4

    Lawyers agree

    Answered . Ultimately, the deduction will end up on your side of the equation. Work with your CPA to document.

  3. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    4

    Lawyers agree

    Answered . I agree-you would get the deduction with proof of payment.
    Your CPA would need to review the trust agreement and confirm.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more

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