Can I as a trustee of an irrevocable trust claim a property tax payment as a deduction?
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Can I as a trustee of an irrevocable trust claim a property tax payment as a deduction?

The house, which I currently reside in and care for is listed under the name of the irrevocable trust.
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Can I as a trustee of an irrevocable trust claim a property tax payment as a deduction?

If the property taxes were, in fact, paid by the irrevocable trust, then certainly, the trust can take a deduction for taxes paid on its Form 1041 tax return.  It will constitute a reduction of Distributable Net Income (or of taxable income).

Alternatively, and depending on the language of the trust instrument, the property taxes paid by the trust could instead by "passed through" to you via a Schedule K-1.  In that instance the trust would not claim the property taxes paid deduction, but you could do so on your personal income tax return (if the total of your Itemized deductions exceeds your Standard deduction, that is).

The point here being that the same deduction for the same dollar of property taxes paid is allowed to only one taxpayer -- the trust, or a beneficiary -- and both cannot claim the same tax deduction for the same dollar amount.  Although, in theory, and again depending on the language of the trust, the tax deduction benefit could be between taxpayers on a split 50% / 50% for example.

Thank you for asking this important question.

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