Aggregate at trust level? - Spidell

Aggregate at trust level?

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Message Board Aggregate at trust level?

This topic contains 1 reply, has 2 voices, and was last updated by Mike Giangrande 4 months, 1 week ago.

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  • #170774

    Do I aggregate at the trust level if the trust owns real estate or do I aggregate at the individual level? Trust has a property manager/trustee who handles the property and there are two properties within the trust.

    If i aggregate at the trust level, then I am afraid I may get stuck in aggregation determine if the trust gets the QBI deduction….or do i just not aggregate and let the beneficiaries aggregate?

  • #170817
    Mike Giangrande

    If the trust distributes all its income currently, and thus does not claim the 199A deduction, then I would not aggregate at the trust level. Leave the decision up to the beneficiaries.

    If the trust does not distribute all its income currently, and thus claims its own 199A deduction, then you need to perform an analysis to determine whether aggregating the rental properties will produce a higher deduction than not aggregating.

    Of course, you can only aggregate if you meet the aggregation requirements, so be sure you meet those first.