what kind of trust? if a grantor-type trust, there's no question that income and expenses are taxed to the grantor. even a trust labeled as an irrevocable can be a grantor -type trust if the grantor retains significant control.
for a true irrevocable trust such as what results when the grantor dies or ceases to be in control, then it depends on the provisions of the trust. some states give the trustee great discretion. for example, the trust may say the income may be distributed, so the decision is up to the trustee. on the other hand, it may say the income must be distributed. even if there is no provision for income distribution state law may give the trustee discretion as to whether income can be distributed.
finally depreciation is part of corpus, so the net cash income could be distributed but the depreciation expense remains with the trust. Agian, the trust instrument may allow distribution of depreciation or state law may leave it at the discretion of the trustee.
