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Discussion Forum Index --> Tax Questions --> Real Estate in Marital Trust
Ritaxman (talk|edits) said:
| 9 January 2006
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| Question is: If real estate is put into a marital trust and there is not enough income in the trust to pay the mortgage and real estate taxes, can the real estate taxes and mortgage interest if paid by the beneficiary of the trust be deducted on the beneficiary's 1040?
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Riley2 (talk|edits) said:
| 9 January 2006
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| I believe that under the equitable ownership rules, the answer is yes. A good place to start is Reg. 1.163-1(b).
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Gonza (talk|edits) said:
| 1 February 2006
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| Since the trust is a different entity: Have the beneficiaries lent enough money to the trust to cover the trust expenses. Be sure that the accounting for the trust discloses the payable, then proceed business as usual. Be sure to document the loan.
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