Rent Payments From Trust Investments

The Plan has a number of real estate properties held under the trust, including several that receive rent payments.  I believe that rents received from assets under the trust a part of the investment return.  My logic is that the properties are owned by the trust, and any rents received would be "investment earnings" and not contributions.  Am I off base?

No, that is absolutely correct, why else invest in such property?

Last time I looked, a long time ago, rent payments were not taxable UBI, so better rent than certain other types of income that could be generated by the property.

Rents definitely are not contributions.  Be careful not to restrict the definition of investment income solely to rents.  Rents are income and are used to cover operating expenses among other things.  Look to the rental property's P&L for financial reporting, for example, on trust reports and the 5500.

Thank you for your comments.  This was a situation where you know the correct answer, but the client's broker was so positive to the belief that rents could be contributions that it makes you stop and question what you believe is correct.  I guess we all have those days where you just feel "shaky" and question yourself.  (At least I do.)  Regardless, I really do appreciate your feedback as it removed all doubts in my mind.  As a side note I did address potential UBI and prohibited transactions with the client at the time our service for them began.