Irrevocable Trust disbursement, it is taxable?
Asked by: tmoran
My mother sold her primary residence and the proceeds (300,000.00), was put into a irrevocable trust. My two brothers and I are the beneficiaries of this trust. On my mothers tax return for the year of the sale of the property, she reported the sale of this property and had no tax liability for the sale based on a number of factors. Tax returns are being filed annually on the trust. Are disbursements from the trust taxable to the beneficiaries? Are expenses managing the trust deductable from the trust’s tax return?