Trust depreciation recapture

Forum|Forum|1 year ago
December 2, 2024
1 reply
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Who pays the depreciation recapture? The trust or the beneficiary?
is it dependent on who got the depreciation deduction?

Not A Product Question

M-MTax

Level 15

is it dependent on who got the depreciation deduction?

Yeah but who sold the property? Depreciation follows income.

Farmgirl123Author

Level 5

The trust sold the property but gave the recapture to the beneficiaries

Farmgirl123Author

Level 5

Depreciation makes it more likely that there will be a passive loss. Not sure what you're getting at here.

I’m just saying that if the trust keeps all the depreciation and amortization with the trust and doesn’t distribute it to 6 beneficiaries of a simple trust that it will be more likely that there are passive losses for the trust then if they had distributed it with the income for a simple trust.
In other words the trust kept the deductions in order to have losses? I’m not saying that is right but I’m saying this is what would happen if you had a lot of depreciation and amortization that you didn’t distribute Ute like you were suppose to?