The Grantor Letter or Information Sheet is a transmittal document, copied to the IRS, showing you as a recipient of various forms of income, and possibly having certain deductible expenses. Enter the information listed in the Grantor Letter in the places where you normally would, had you paid or received these items directly instead of through a trust.
You report each income and expense item as if you had received an equivalent 1099, using the name and EIN of the Trust as the payer. So treat interest as if a 1099-INT, dividends as if a 1099-DIV, Gains and Losses as if a 1099-B, etc.
Some of the more common items and where to add them include the following:
Thank you, that is very helpful. You did not address where to enter Passive Income (Loss) from a Grantor letter?? Please advise -
It depends on what the passive income/loss is from. Passive income generally includes dividends, interest, royalties, rents, annuities, etc.
If you don't know the type of activity that generated the passive income, enter it as interest or dividends.
It is a passive loss from Partnerships. Still enter a loss as interest or divs?
I have a capital loss of around 13K from sale of family home and investments, both in the trust. But when I enter the numbers in the interview part of Turbo Tax it looks right, but the Federal review takes me to a form (Schedule D?) where the numbers are shown in the wrong places. My capital loss shows up as the Gross Proceeds, with the actual sale price (net proceeds on interview) on the line for expenses and commissions, and the cost basis on the next line. Is this a glitch? Can I enter directly into a Schedule D?
My trust's grantor letter says the long-term capital gain is from an installment sale. It has a form 6252 attached for the trust. I don't recreate a new 6252 in Turbo Tax for me, do I (with pro-rated values)? That doesn't seem right, but neither did entering it as a 1099-B since that's not what the IRS received from the trust. What do I do?
I would create a 6252 in your return with the information from the Trust, since there is no K-1. Form 6252 reports principal and interest payments on an installment sale not only in the year of the sale, but also payments received in the future.
Hi, is there an answer that's missing from this thread? I'm not seeing the answer to the original question of how to input a Grantor Letter.
@taxesarefun2019 wrote:Hi, is there an answer that's missing from this thread? I'm not seeing the answer to the original question of how to input a Grantor Letter.
Yes, the primary answer did not transfer over to this new forum from the old board.
Essentially, you can enter the information from the grantor letter (GIS) as if you received multiple 1099s (e.g. enter interest as if you received a 1099-INT, dividends as if you received a 1099-DIV) or simply use the K-1 entry for a trust in TurboTax as a template.
But the Grantor Letter says to enter the interest income and dividend income on Form 1040 Schedule B. How do I do that?
Ok ... in the program simply enter the interest and dividends and if you are REQUIRED to file a Sch B the program will populate it and that would be correct ... the people who sent the letter do not know if you are required to file a Sch B or not and you cannot force one if it is not needed ... IRS regulations.
Turbo Tax will not have a status on your refund. If the IRS website says processing, this means they are working on it.
I see no best answer to this question. Nor do I get much help from within the software. It always wants me to amend an tax return. My Grantor tax information letter has multiple forms indicated and for the most part I can't find them in the program. I might have to look into other software to do my taxes in the future. They just want me to keep spending more money to upgrade and if i do I have no idea if I will even get the information I need then. Form 4797, Form 8995, Schedule E, Interest Capital Gains. This is a liquidating trust for a REIT.
Qualified business income? Section 199a UBIA? Passive Income? No answer?
For your scenario, you would probably be better off using a desktop version of TurboTax and using Forms Mode (which the online versions do not support).
Hello Yank,
I seem to have the same situation as you. If you find a solution to this I would appreciate if you would share it.
I went into forms mode on the desktop version and the lines that the grantor tax letter says to use are not open for me to type in. Any suggestions?
With respect to entering a (more complex) GIS into TurboTax, you basically have three options:
1. Enter the information in Step-by-Step Mode (which requires knowledge of which proper section to use in the program for each entry).
2. Enter the information in Forms Mode on the proper forms or worksheets (which may, in certain circumstances, require overrides which will void the TurboTax accuracy guarantee and require that the return be printed and mailed).
3. Enter the information as if a K-1 had been received in the K-1 section of the program.
Where do I enter Business Property Gain and ECI loss from a Grantor Tax Information letter
@rk76 Click this link for into on How to Enter Sale of Business Property.
"Generally, when a foreign person engages in a trade or business in the United States, all income from sources within the United States connected with the conduct of that trade or business is considered to be Effectively Connected Income (ECI)."
If this applies to you, click this link for more info from the IRS.
Hello,
I have a Grantor Trust Tax Information Letter from HGR Liquidating Trust which is a liquidating trust for Hines Global REIT, Inc. I know that this is a lot to ask but there seem to be a number of people having trouble with this. Is there any way you would be able to provide specific instructions on how and where to enter the amounts below, specifically which form and field the amounts go in? I am using the desktop version of TurboTax Deluxe. This would be very helpful to me and I'm thinking other people with the same issue could use this as a guideline as well. Here are the description and amounts. Thank you in advance for any help you can provide.
Interest Income Information:--------------------------------------If Individual Taxpayer, Enter On
Interest Income on other than US Obligations--- $1----Sch B, Form 1040, Line 2B
Capital Gains Information:-------------------------------------------If Individual Taxpayer, Enter On
Business Property Gain of Loss:----- $90--------------------Form 4797, Part I, Column G
Unrecaptured Section 1250 Gain---- $90--------------------Line 11 of Worksheet for Sch D, Form 1040,
Line 19
Miscellaneous Income Information:-------------------------If Individual Taxpayer, Enter On
Partnership Income from Passive Activities----- ($108)----Sch E, Form 1040 Part II
Hines Global REIT Properties, LP
EIN: 26-4000369
Qualified Business Income Information:----------------------------If Individual Taxpayer, Enter On
Section 199A Qualified Business Income----- ($39)--------Form 8995
Section 199A UBIA------------------------------------ $2479------Sch E, Form 1040 Part II
Hines Global REIT Properties, LP
EIN: 26-4000369
Effectively Connected Income (ECI) Information:------------------If Non-US Taxpayer, consult your tax advisor
Your share of ECI from underlying assets:--------->($18)