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Papawiss
New Member

Can I deduct expenses for four houses even thought only one of the has income (from rent)?

I have an irrevocable residence trust with 4 properties, my main house and two vacation homes that do not have income, and one house I rent (total income $13,000 this year).  Expenses for this year for all four properties is projected to be about $30,000, only about $8,000 of which is for the one rental property.  For 2016.   

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1 Reply
Carl
Level 15

Can I deduct expenses for four houses even thought only one of the has income (from rent)?

You MUST seek legal advice. No two trusts are the same (EVER!) and the state you are in can (and will) also impact how you treat things on the federal return.

Basically, the one rental house is reported on SCH E. The other houses are reported elsewhere, and it depends on the terms of the trust. While you can use TurboTax for the trust, please seek legal advice so that you do things IAW state laws and avoid the potential massive penalties that can be assessed on the estate administrator by both the IRS and the state if things are not done IAW the trust.

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