if the property is owned by the Family Trust, you need an EIN number and also need to file a trust tax return. Is there really a trust document. some states have in their trust laws a provision that makes depreciation a charge to corpus as opposed to income. in those cases the trust must provide that depreciation can be distributed to trust beneficiaries. Otherwise, cash income and expenses get distributed to beneficiaries but the depreciation stays with the trust and thus can't be used by beneficiaries to offset income.
