Trust Depreciation

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Trust Amortization, Depletion, and Depreciation

Calculated normally, same as Individual. Can be retained in the trust, or passed out to the beneficiaries based on the pro-rata amount of Ordinary Income received by the beneficiaries. No Section 179 deduction allowed. Depreciation is separately stated on the K-1 because it is allocable to corpus and should be kept separate. It is not combined until the beneficiary reports it on their 1040.

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