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Trust Related Tax Question
Question regarding a property held in a irrevocable trust.
Home value is $750K, owned outright by the trust - no mortgage.
A family member lives in the house, no rent is charged.
Meanwhile, the trust is paying for the maintenance, repairs, insurance, taxes, etc.
In talking to my CPA (who does not seem versed in this matter) I am told I cannot write off any of these expenses, since there is no income to write them off against?
In this situation would it be wise to charge rent, in order to show some trust income, so the expenses can be written off? The little bit I have researched this shows this to be an option, but the rent would have to be "reasonable market rent".
Any idea if this is a viable option? Any other suggestions?
Appreciate any advice.....