Trust depreciation for Rental real estate in Iowa


A

A R Pickett

The trust involved is a simple trust and owns two parcels of
rental real estate in the state of Iowa. The trustee is an
elderly gentleman (my dad) who has been recording
depreciation as a deduction on Schedule E, creating a loss,
reporting NO items of income or deduction out to the
beneficiaries.

My siblings and I are hoping to persuade him to allow
someone else to handle tax compliance tasks

I read the Instructions for Form 1041 and related Schedule
K-1 to indicate that unless local law reads to the contrary
that depreciation deductions are properly reported on
Schedule K-1 and are available to the beneficiaries.

Can any MTM reader advise me whether Iowa law would prevent the depreciation
deduction being alloted to the beneficiaries?
 
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