So, still a little bit confused here. The estate has a rental activity which shows income, but has depreciation losses which make the rental actvity an overall loss. If the fiduciary elects to allocate all of the rental income to the estate, can the estate then use the rental loss to offset other income, such as dividend, interests, etc., up to $25000, so the income to the beneficiary on their K-1 is reduced, and non of the depreciation is passed on? In general, can I allocate the income any way I wish in order to minimize taxes all around? Is there any way to utilize the exemption to reduce the pass through income?
