How do I enter information from a Grantor Letter?

[Wherman396]

I have the same issue with the HGR Liquidating Trust.  TT... where is your help for this situation?

[Jacker]

I spoke with TT technical support a couple of days ago. The agent was very nice and dug around. Finally recommended this...https://ttlc.intuit.com/community/after-you-file/discussion/how-do-i-enter-information-from-a-granto...

Haven't gotten a real warm feeling about that one. I have a meeting with my financial adviser tomorrow on some other stuff but going to see if he can help or point me somewhere. Otherwise, TT suggested I could upgrade to the LIVE advice for the online Premier and talk to a tax person. I just don't think it's going to take a tax expert, just someone who knows where to enter this stuff so it will populate the right schedules.

[DorothyJ]

Jacker & others, try this link: https://ttlc.intuit.com/community/taxes/discussion/re-what-is-ubia-referenced-in-sec-199a-box-20-of-...

I followed his instructions & found where to enter the 199A info.  You can see my follow-up question in that thread.  I think we may be getting somewhere...

[DorothyJ]

Hope this helps all of us struggling with the HGR Liquidating Trust Grantor Letter:

https://ttlc.intuit.com/community/taxes/discussion/re-what-is-ubia-referenced-in-sec-199a-box-20-of-...

I followed the directions given by DaveF1006 on the above thread & entered all the numbers from the Grantor Letter by generating a K1 as Dave describes.  I checked boxes 1-5 and box 14 on his Step 7.  This gave me places to enter all the numbers.  

Problem: on the Schedule E generated from my K1 entries, the "Partnership Income from Passive Activities" is entered under the "Active" column instead of "Passive."  (note: the active & passive numbers flow down to the same spot.)  Schedule E also shows this income as belonging to the Liquidating Trust as opposed to the REIT Properties LP as indicated on the Grantor Letter.

Bottom line: I did this for both of the Grantor Letters I received from HGR Liquidating Trust and it made zero difference to what I owed.  I'm not going to file right away; I'll wait to see if anyone comes up with a different/better solution that gets around the Schedule E problem.

(I didn't include Dave's instructions on this thread because I felt funny about copying someone else's response & posting it.)

[Wherman396]

Thank you for keeping the issue alive and working the issue so hard.  I am still a bit confused as to which numbers in the grantor letter goes into which entry of the k-1 that is created.  

I also selected boxes 1-5 and 14, but the wording is different as mentioned above.  Could you please explain or show where the Business property gain or loss, Partnership Income From passive Activities belong on the K-1?

Thank you in advance

[DaveF1006]

It depends. Reading your question, I am confused because it sounds like you are preparing two different K1's. If I read your question correctly, you may have mistakenly choose a K1 for a partnership rather than a K1 for a trust. These are very different.

Please go back and review your K1 entries just to make sure you are working in the right K1.

[Hiker23]

Hello Dave,

If you read my post from Friday on this same thread,  I have spelled out the exact information as provided by the HGR Grantor trust letter that we are all having trouble with.  There are quite a few of us with the same letter.

Would you be able to provide a more detailed instruction on how to map the contents of the letter to TT, including which form and field to use?

Thanks so much for your help.

[rwrosche]

I have the same lines and am confused. I currently have 2 K-1’s  set up on my return. One for HGR liquidating Trust and another fit Hine Global REIT Partnership LP.   Not sure if I am on the right track. 
I also get an error from the zip code of all things. 

[Hiker23]

Hello rwrosche,

HGR Liquidating Trust is the liquidating trust for Hines Global REIT, Inc.  Since they are showing partnership income from Hines Global REIT Properties, LP, I suspect that HGR Liquidating Trust received passthrough income from Hines Global REIT Properties, LP on a K-1 form which is in turned passed through again to the shareholders who received the Grantor Trust letter.  So, two levels of passthrough.

I am hoping that DaveF1006 will be able to take the lines and amounts shown on the Grantor letter that I typed out on my post last Friday and show us how to map them into TT.  @DaveF1006 

It is confusing adding the partnership income to the mix.  The grantor letter states that this should be reported on Sched E part II (which is the partnership section) but if you use the K-1 input form for a trust the income goes to Sched E part III.  Also, I tend to think that the name of the partnership and its EIN are provided for a reason.  So you may be on the right track with entering two different K-1s.

Let's see what DaveF1006 thinks...

Hiker23

[DorothyJ]

Okay, so now I'm back to being confused.  I tried creating a separate K1 for the partnership, but couldn't see where to put the numbers.

On our letters, the LP is named beneath the sections on Misc Income & QBI.  So those numbers seem to apply to the partnership.  Does that mean that the numbers in the other two sections of the letter (Interest Income & Capital Gains) apply to the Trust?  @DaveF1006   

[tagteam]

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@Hiker23 wrote:

It is confusing adding the partnership income to the mix.  The grantor letter states that this should be reported on Sched E part II (which is the partnership section) but if you use the K-1 input form for a trust the income goes to Sched E part III. 

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You are simply using the K-1 entry section in TurboTax to "map" the items reported on the GIS to the proper forms and schedules. 

If you use the K-1 for trust/estates, then Schedule E will reflect that selection in Part III. If you use the K-1 for partnerships, Part II of Schedule E will be populated.

[tagteam]

Anyone who is reading this thread and received a GIS from Hines should read through the information on the SEC web site (link below):

https://www.sec.gov/Archives/edgar/data/1453818/000145381820000014/ex991-hgrliquidatingtrustf.htm

Take note: 

Although the Trust will not be treated as a partnership for U.S. federal income tax purposes, the tax consequences to unitholders generally will be similar to those that would be experienced if the Trust were a partnership.

[Hiker23]

Hello,

Are you saying then that we need (2) K-1s set up in TT?

One Trust type K-1 in TT for HGR Liquidating Trust for the following:

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

One Partnership type K-1 in TT for Hines Global REIT Properties, LP for the following:

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)

Thanks for your help on behalf of all the HGR unitholders!

[rwrosche]

Hiker23,

I am in there now and have no idea.

My letter is similar to yours.

It appears that the Section 199A UBIA came from Hines Global Reit Properties LP.

Trying to figure out how to get the $2,479 you show into Schedule E part 2.

Some of the other posts lead me to believe it does not matter if it's a Partnership or Trust.

Getting more confused by the minute.

[tagteam]

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@rwrosche wrote:

Some of the other posts lead me to believe it does not matter if it's a Partnership or Trust.

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I have done test returns (this year and in past tax years) and have found it is a bit more straightforward to enter the K-1 as if it were from a partnership.