Discussion Archives:Family trust deprec - help

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> Family trust deprec - help


Discussion Forum Index --> Tax Questions --> Family trust deprec - help

MLG (talk|edits) said:

2008 October 7
I'm doing my first 1041, a Family Trust complicated by prior depreciation taken by day care business.

Family home (R.E.) gifted in Jun06. Gift T/R shows: Adj basis $121k, Value $203k. Home has been depreciated on Sch C with a basis of $86k (bldg) at 74% Biz use for 18 years. Now the home is rented from the trust by the grantors (Sch E) at 100% biz use. Is there any basis adjusment for the prior depreciation taken? ProSeries is calculating too much depreciation this year and I think it's because the prior deprection was less than 100%. What basis should I be using? How can I make this work?

There is also an inground pool - are maintenance expenses deductible by the trust, the day care, or neither?

Personal tools