Do I own my home in an "Irrevocable Trust with Life Estate"?

[oatmeal]

There is a question in turbotax premier that asks if "I owned my principal residence". How should I answer this if I have my home in an "Irrevocable Trust with Life Estate"?

[Vanessa A]

It depends why you are asking and where you see this question. 

Technically, you transferred ownership of your home to the trust, so no.

But, if you are trying to itemize your return for federal purposes and want to know if you can claim mortgage interest and property taxes, then the answer would depend on if you are obligated to pay them and if you paid them.  If the answer to both of those questions are yes.  If the trust pays the mortgage or taxes, then you would answer no.  

If this question is in your state return, the answer would depend on the state and the purpose. 

[oatmeal]

Thanks Vanessa for your reply. I pay the real estate taxes on the house. There is no mortgage. In the MA State section, there is this question: Senior Circuit Breaker Credit. This credit is available to you if you meet the qualifications. Qualifications include being age 65 or older before January 1, 2023 and total income for 2022 of $64,000 or less.  Tell us about your principal residence:
O l owned my principal residence.
O I rented my principal residence.
O l didn't rent or own.

[Anonymous_]

Generally, if the trust is considered to be a grantor trust (despite being irrevocable), you are considered to be the owner of the assets contained within the trust.

See https://www.irs.gov/businesses/small-businesses-self-employed/abusive-trust-tax-evasion-schemes-ques...

[Vanessa A · Accepted solution]

For the Senior Circuit Breaker Credit, you would be considered a renter since it is held in trust.