What kind of trust is this?
If it is an irrevocable trust than you cannot take the deduction for home mortgage interest and property taxes.
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Yes...an irrevocable trust can pass mortgage interest and property taxes to the grantor/beneficiaries for the deduction on their personal tax return.
Sorry about the typo in the earlier post- As I mentioned in my first post
Yes...an irrevocable trust cannot pass mortgage interest and property taxes to the grantor/beneficiaries for the deduction on their personal tax return.
You can deduct home mortgage interest only if you meet all the following conditions.
The mortgage must be a secured debt on a qualified home.
So in your case the question of $2.2 million of mortgage does not arise.
In any case- if both the parents and the children own the property than based on the ownership ratio and presuming that both are equally liable on the mortgage.,....you will be able to get upto $1.1.mn for your parent and $1.1 mn for your child....
The irrevocable trust does not have any income from the house so there is no question of deducting the mortgage interest and property taxes.
Yes...you are right...You might want to consider having a living trust(grantor trust) and than the mortgage interest can be passed on to the grantor...