Are the fees to transfer a rental deed into a trust a deductible expense?

[hslettel]

I transferred a rental property we own into a trust as part of overall estate planning and wondered whether this fee is deductible as a professional or legal expense.

[Anonymous_ · Accepted solution]

These types of expenses are no longer deductible after tax reform (the TCJA).

See https://www.irs.gov/publications/p529#en_US_202012_publink10004496

[hslettel · Accepted solution]

Glad I asked! Thanks!

[quickvale]

Hi @hslettel ,

Would you mind sharing how you reported in TurboTax the transfer of your rental to a trust?

I'm trying to find some information but have not found it.

Thank you. Appreciate your help

[Anonymous_]

It is usually done with a standard quitclaim deed, which can be drafted and filed by a local attorney or title company.

If the trust is a grantor trust (aka revocable living trust), then you report expenses, such as mortgage interest and property taxes, on your individual income tax return (1040).

[quickvale]

Thank you. Yes, I already took care of the trust set up. The second part of you answer was very useful and now after reading some more articles I understand all the property expenses and income are reported via individual income tax return 1040.

Thank you very much!