Trust Depreciation allocation - amount to beneficiaries vs. amount to trust. If I allocate the depreciation on my rental 1041 schedule e to beneficiaries, what would happen to the depreciation amount on the rental? Will it be taxed when I sell it. What is the difference between the two and how can I benefit one of the beneficiaries, since she is getting 100% of the income earned and in charge of all the expenses? Thank you.
