Yes you can deduct the cost of repairs and maintenance from the trust. You would report the property income and expenses on a Schedule E in the 1041 return (just as on a 1040 return).
Improvements are depreciated over time. The IRS requires that depreciation for such improvements occur over the economic life of the building. Repairs can be taken as an expense and deducted in the year they are incurred.
An improvement is work that prolongs the life of the property, enhances its value or adapts it to a different use. On the other hand, a repair merely keeps property in efficient operating condition.
