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Level 3
July 14, 2020
Solved

Am I required to allocate property taxes between tax exempt and taxable income for a residence included in a trust

  • July 14, 2020
  • 2 replies
  • 29 views

I have a client with a Qtip trust that owns one half of her residence. I am allocating one half the property taxes for that residence to the Qtip trust. That trust has mostly tax exempt income. Am I required to allocate the property tax deduction between taxable and tax exempt income?

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Best answer by Accountant-Man

No. Only fees, like tax prep and attorney.

2 replies

Accountant-Man
Level 13
July 15, 2020

No. Only fees, like tax prep and attorney.

** I am "Elevating with Intention!"
Level 3
July 15, 2020

Thanks for the quick reply! I kind of thought that was going to be the answer...but comfort comes with confirmation.