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If income realized by the irrevocable trust (including rental income) is distributed to beneficiaries or must be distributed according ti trust documents - that income is passed to beneficiaries and reported on K1 statement to each beneficiary and deducted on the income tax return of the trust (form 1041).
Taxable income is determined the same way as for any other taxable entity - (gross income ) MINUS (qualified deductible expenses).
So for farming activity - the trust will be able to deduct qualified farm expenses - and will be taxed only on net farming income.
The mortgage itsef is not deductible expense, but mortgage interest on the farm land is deductible.
Alos real estate taxes, insurance and some other qualified expenses may be deducted.