swongtax
Level 4

Please help if you can answer this question:

am working on a taxpayer's tax return who is a grantor of a Grantor Trust (with EIN) with a rental property that should be reported on the Taxpayer's tax return.

Question: The Grantor Trust Form 1041 is blank, with a statement attached to report rental Schedule E income and deductions on the Grantor's income tax return.  However, there is no depreciation on Schedule E (Form 1041), but the trust statement is instructing me to report the depreciation on the taxpayer's Schedule E.  On the state trust tax return schedule E, the depreciation number is appearing on that schedule E (as a federal/state difference item).  Am I supposed to include the depreciation number on the taxpayer's individual income tax return Schedule E? Why is the Trust Fed schedule E not showing the depreciation number and Trust state Schedule E showing the the deprecation number?

 

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