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Irrevocable Trust income

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ohio
I am trustee of an irrevocable trust. My home, insurance and a CD are in it. I have been paying the real estate tax and insurance premium out of the interest from the CD, which about covers those costs. Do I have to pay income tax on the full amount of the interest at the Trust inc. tax rate, which is 28%???
Doesn't seem quite right. This is the B trust..I have revoked my A trust.
Thanks
 


L

loku

Guest
You should be filing a trust return on Form 1041. In it, you must report the interest income and you can deduct the property tax and insurance premium, or if the trust is set up otherwise, you report the income for the trust on the Form 1041, and you show a distribution deduction for the taxes and insurance. Then you show the income from the trust distribution on your 1040 and deduct the property tax.
 

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