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Level 1
posted Apr 29, 2024 2:54:04 PM

Grantor Letter Entry in TT; Income & Expenses on K-1 or Schedule E if I have Depreciation

I'm using TT Premier Desktop.  I received several grantor letters for my DST (Delaware Statutory Trust) investments.  I see in previous posts to enter data from Grantor Letter into K-1 template; however I also am calculating depreciation based on my DST purchase price.  For those assets, the depreciation shows up on Schedule E but my net passive income, amortization and interest income show up on the K-1 Trust form.  This seems to be a disconnect with activity across two forms.  Shouldn't all the activity show up on one form to match income with expenses?  Because I'm using Schedule E for depreciation, should I also transfer the passive income and amortizatoin to Schedule E except for interest income which I can list on Schedule B?  Or is there a way to link the assets to the K-1 Trust form?

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1 Replies
Level 15
Apr 29, 2024 4:56:46 PM

The k-1 reporting method may not be in accordance with the iRS and Regs reporting methods

https://griffinbridgers.substack.com/p/does-my-grantor-trust-need-an-ein . 

https://griffinbridgers.substack.com/p/income-tax-reporting-methods-for 

 

 

others have argued that the k-1 reporting method is fine.