Should I claim the income and expenses on rental property in a trust that I am a beneficiary of, and by what method?

[landylou]

 what should I do about the income I received for rent and the expenses I incurred in maintenance and updating if the property is a part of a trust

[CarolynM]

Yes, you should report the income and expenses on the trust tax return, Form 1041. 

The trust return will generate Form K-1 to you to reflect the income you received after a reduction for the expenses, which you will enter on your personal tax return. 

[Oscar365]

Follow up.  Two beneficiaries.  Trust asset is family home after parents died. If one of the two beneficiaries is living in the property and paying rent for the other beneficiary's half, can the trust deduct all the expenses or just half from the distribution listed on the K-1 for the beneficiary receiving the rent?

[NCperson]

if there are two beneficiaries, then each beneficiary will receive a K-1 with their share of the allocated income and expenses listed.  if you are NOT living in the property, then the K-1 you receive should be copied to your Form 1040 as is. 

who is completing the Form 1041 and related K-1 for the Trust?

[Carl]

and paying rent for the other beneficiary's half,

The rent is being paid to the trust - not to *any* individual.  Doesn't matter who pays it either. The *TRUST* will report all rental income and rental expenses on SCH E as a physical part of the 1041 trust return. Period.

How things are allocated by the trust on the K-1 issued to each benificiary depends on the terms/conditions of the trust. It has nothing to do with who lives in the property and/or who pays rent.

There are many different types of trust, and just as many ways each type can be set up. If you're unsure on this I would highly suggest you seek professional help with "at least" the 1041 return. Doing things wrong will cost the legally recognized administrator of the trust money out of "their" pocket. The trust does not pay fines and penalties for mistakes the trust administrator may make. The administrator will pay them out of their own pocket, and those fines and penalties are not deductible on "ANY" tax return.