I am in a family trust and we are charged an Owners Taxes listed on the Revenue statement.
My question is how or if I or my family reports these Owners taxes on our personal Income Tax?
Bruce, you need to show this to your accountant to get the correct answer. It will all depend on the specifics of how your family's Trust is set up.
In general, the owner's share of tax is typically shown on the royalty check stub. The "Trust" is the aspect where you need qualified advice. As far as I know, most (if not all) Trusts are a taxable entity. So a tax return would be filed by the Trust. On that return, the Trust would be realizing that production tax expense against the royalty income (the "Gross" income vs the "Net" income). Presumably the Trust's return would also be realizing the depletion allowance too. Again, seek professional advice and be sure your family is reporting it properly and you are claiming whatever benefits you can.
We are in an LLC...and the LLC has responsibility (on behalf of the owners of the LLC) for the Montana taxes. We then get a credit on our Minnesota State tax form for taxes paid to another state based on the percentage of ownership for each individual. As far as Federal Taxes are concerned, that is 100% the responsibility of each individual on their own personal taxes after the LLC issues them a K-1 form.
Whether this is helpful for your trust question, I'm not sure...however, I would make the assumption that a trust would have somewhat the same tax responsibility as an LLC. And, I agree with Eastern...get yourself an accountant for this one. That's what we have done and it is well worth the dollars spent.