When it comes to trusts, there are so many different types and just as many ways each type can be set up. I myself don't even try to pretend I know what I'm talking about when it comes to trusts. Especially living trusts. But I would think that if the rental property is in a trust, then all income is reported on the 1041 trust return, as are all expenses including property taxes. How that would be transferred to a beneficiary of the trust via the K-1 is well beyond my ability to comprehend though. So that's a good reason to seek professional help. This is especially important if your state taxes personal income.
