Q: I have a house that I inherited that is in a trust, it still has a mortgage but I want to start using it as a rental.
I'm the trustee, Will I pay more in taxes if I claim it on my taxes, or should i get a ein for the trust and file it's own taxes and leave the house in the trust
A:
Federal income tax rates for trusts are compressed. In 2020, trust net income that exceeds $12,950 is taxed at a rate of 37%.
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