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Level 3

Question

How do I enter Grantor Letter tax information into Turbotax?

Forum|Forum|7 years ago
June 5, 2019
3 replies
29 views

A previous answer to a similar question recommended to enter the data as if they were provided on one of the 1099 forms. I can do that fairly easily for the Interest Income by going through the appropriate section of the Turbotax.

But how do I enter the following:
1. "Other Income: Ordinary Income (Loss)",
2. "Passive Income (Loss) from Partnerships", and
3. "Long Term Capital Gain", consisting of
a. "Securities Sales and Other Nonpassive Transactions", and
b. "Gain (Loss) from Partnership, S Corps. & Trusts"?

I tried to enter the ordinary income and passive loss from partnerships on a 1099-MISC, but Turbotax complained that there are no data on some other forms.

I attempted to enter the capital gain (both items) as miscellaneous securities sales (stock sale) without receipt of 1099-B, but had to provide a date of sale (12/31/2018?) and cost basis (with zero, everything is taxed). I am not sure if any of this is appropriate.

All the numbers listed in the grantor letter are rather small. The grantor letter from the Metropolitan Creditors Trust was sent to my husband after his mother passed away last year. I am using Turbotax Premium from a CD. Our tax return is otherwise fairly simple and I usually supply all the data and information by going through the Turbotax interview based on the forms we receive.

A scanned copy of the Grantor Letter is attached.

Thank you in advance for any help you can provide.

Marie

TurboTax Premier Windows

Level 15

"How do I enter Grantor Letter tax information into Turbotax?"

For that particular GIS, you can try entering the information as if you had received a K-1.

Level 2

Did you ever figure this out? I have the exact same question. The same letter from the same company.

Level 13

Enter the information from the grantor trust as a Form 1041 Schedule K-1. Refer to a copy of Form 1041 Schedule K-1 at this link for a "visual" of the boxes that "match" your grantor letter.

You may have to enter two separate K-1s for the same grantor letter to report the passive loss from the partnership, depending on what type of activity generated that passive loss (e.g., rental real estate).

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Level 2

Can I add this form to my Turbotax Deluxe program?

Level 9

To enter a grantor letter, you need to use the Premier version of the software. To do it, you will enter the information as though you received a K-1.

Box 1 on the K-1 (1041) is for interest income which will flow to Schedule B, as will Box 2a for dividends.

Boxes 3 and 4a on the K-1 (1041) are for short-term and long-term capital gain, respectively, which will ultimately wind up on Schedule D.

Here is how to enter a K-1:

ou need to use the Premier version of TurboTax to enter a Schedule K-1 in TurboTax.

Please make sure you use the right K-1 entry form. There are actually three types of K-1s, depending on the type of entity creating the K-1: partnership, S-corporation and trust/estate. Lines and codes on the forms differ from each other.

To enter information from a Schedule K-1, please follow these steps:

Click on Federal Taxes > Wages & Income > I'll choose what I work on.
In TurboTax CD/Download: Go to Business Investment and Estate/Trust Income, click on the Start/Update box next to Schedule K-1. In TurboTax Online: In the S-corps, Partnerships, and Trusts section click the Start/Update box next to Schedule K-1.
Click Yes on the next screen, Schedules K-1 or Q.
On the Tell Us About Your Schedules K-1 screen. Click the Start/Update box next to the type of entity that issued the K-1 (S-Corps, Partnerships, Trust/Estate).
If you have already entered K-1 information, you will see a Summary screen. Click Add Another K-1 to enter your information (or click on Edit to continue with the existing form entry).
If you haven't started entering K-1 information, continue through the screens, entering the requested information.