You will pay essentially zero percent on the gains for federal income tax purposes as long as that is your taxable income based upon your tax return. (biggerpockets.com)
Interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. (themortgagereports.com)
The Trust is classified as a «grantor trust» for US federal income tax purposes. (sec.gov)