Legal Question in Wills and Trusts in Florida
Very late last December, I placed a mortgage free, non- homesteaded, duplex I owned into a trust as a form of asset protection. As such, the duplex has effectively been an independent entity, has an EIN, a bank account, and I am the trustee of the trust.
For 2016 the duplex will be firmly in the red, while I am moving into a higher tax bracket personal income wise. However, if I could include the duplex�s losses on my personal income tax file, I would likely avoid the higher tax bracket. I have always claimed the duplex on my personal tax forms, but is it possible to do that now with it in trust?
2 Answers from Attorneys
What losses do you refer to? This is a tax issue. Talk to your accountant.
The placing of the property into a trust does not necessarily protect it from personal creditors. You need to discuss what you are trying to accomplish with an asset protection attorney. The trust losses should flow through to the beneficiaries, but I agree that you need to review what occurs with them with an accountant.
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