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I have a client who purchased Rental property in her name. She paid Legal Fees to Transfer the Title of the Rental Property to her Revocable Trust. Are those legal fees deductible on Schedule E? Or more of a personal expense?
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Thank you for your reply. Just to clarify, the purchase of rental property remained rental property. Does that change your answer?
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Why didn't she put it in the trust in the first place? She hadn't been conned into thinking she needed a trust yet? Estate planning, whether needed or not, is a personal expense. Just because it's income property doesn't mean the transfer is income-related.
Next year she'll be back transferring it to an LLC. Because, well, everyone else does it, right? (Except in California.)
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How do you remove the rental property from Schedule E on personal return, when transferrring to a irrevocable trust. The family owner has dementia, so they are trying to protect the rental. It is still commercial rental property. I am only removing from personal return, she has someone doing the trust return. I do not have any experience with irrevocable trusts.
Thank you
Angela