Have a Tax Question? Ask a Tax Expert
Hi from Just Answer. I'm PDtax. I'll assist.
Yes, the SNT can deduct payroll expenses and rental fees against its income. The expenses should be for the established purpose of the trust, but both can be deducted.
Thanks for asking at Just Answer. Positive feedback is appreciated when you rate my assistance. I'm PDtax.
The 1041 reporting of rents is on line 15a, allocated between taxable and tax-free incomes.
Payroll is deducted on the same schedule.
I am a CPA, licensed in New York. You can check my credentials on the site. I own a CPA firm.
I have a special needs trust as one of my personal tax clients.
Please rate my assistance to close out your question. I'm glad to help.