Home Depreciation with Home in Trust

[nitz369]

This one is for you Tom, this should be my last question of the year!

I didn't think about this one last year when I did taxes last year so maybe I will have to go back and amend.

So here it is: I am curious how my housing situation would work for depreciation. I understand you have to own the house in order to depreciate but my situation is a little different. The house is owned by a Trust for which I am a manager / owner of the trust. The house is paid in full, but we pay a small "rent" fee to my in-laws for the house.

Would this be considered that we own the house? Since my name is on the trust?

[TomCopeland]

Trust

This one is for you Tom, this should be my last question of the year!

I didn't think about this one last year when I did taxes last year so maybe I will have to go back and amend.

So here it is: I am curious how my housing situation would work for depreciation. I understand you have to own the house in order to depreciate but my situation is a little different. The house is owned by a Trust for which I am a manager / owner of the trust. The house is paid in full, but we pay a small "rent" fee to my in-laws for the house.

Would this be considered that we own the house? Since my name is on the trust?

If you as an individual are responsible for the house payments, then you can depreciate the home. If not, then no.

[nitz369]

If you as an individual are responsible for the house payments, then you can depreciate the home. If not, then no.

That's where the question comes in. Since the house is paid for in full we make the house payments to the Trust and not to a bank.

Also do I put current market value of house?
TurboTax decpreciation options put it as J1- NonResidential, is that correct?

[nitz369]

Okay TurboTax wants me to add House Depreciation under Home Office, which gives me no tax advantage since I am negative this year. Is Home Office the correct place for this? If I manually add it under Depreciation Assets it changes my net income.

[nitz369]

I figured it all out on the actual tax forms. I will just take the Home Office Carryover. Taxes are done and filed.