Yes, it is a grantor trust. As such I have been submitting a schedule E for the rental properties as part of our personal return. But we have previously been paying for improvements, maintenance, property tax and insurance from our own funds. When we sell the one property the trust will have funds in it, not just property. I have been advised by both our trust attorney and a CPA that the trust can pay rental expenses, but I do not understand how that is properly reported, especially as nobody has indicated that our personal mortgage can be deducted. That means expenses would be partially paid by us and partially by the trust.
I have always done our taxes, and I worked in the past for both Turbotax online support and Jackson-Hewitt, but this is an entirely new area for me. I keep getting bounced between my attorney and CPA, so I thought I'd try here before going back to them again.
