How do I enter information from a Grantor Letter?

[da1963]

just an update, they can send the instructions as to how to load into Turbo Tax but are not in a hurry to correct the cosmetic changes on this letter.  They said the "date" is correct on the cover letter.

Stay tuned

[Wherman396]

Hi DorothyJ,

So, I have an updated Grantor letter coming upon my request, but dont know when it will be here.

Last piece of information that is missing to make the partnership complete, would be to have the UBIA info pass through to the correct form (8995?).  The UBIA data is on the Turbotax Partnership K-1 in the appropriate place but not on any subsequent forms.

Has anyone located where the UBIA data is located after entering on the K-1?  Perhaps it is on a form that I don't recognize.

Thanks

Warren 

[DaveF1006]

You will enter the information in Box 20 with a code Z. When you begin entering information in Box 20 of the partnership return, you will enter code Z and no amount. There will be followup questions and screens to answer questions. When you get to this screen i have included below, you will select the checkbox indicating UBIA of Qualified Property.

[Wherman396]

Dave,

Thanks for the reply.  I selected that box and entered the UBIA information.  What form does the information get transferred to, or does it just remain on the K-1 without going to a subsequent form?

Thanks

W

[tagteam]

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@Wherman396 wrote:

What form does the information get transferred to, or does it just remain on the K-1 without going to a subsequent form?

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Form 8995, if at all. The UBIA figure is only used to calculate your qualified business income deduction (QBID) which you probably do not get anyway.

If you are using a version of TurboTax that supports Forms Mode, you can see the calculation (if any) on your K-1.

[Wherman396]

Dave,

Thanks again for the quick response! It is not on the 8995, but in 2 places on the K-1.  So, I am thinking that I am finally done and can submit my return.

Thanks

W

[DorothyJ]

I didn't receive an updated Grantor Letter.  I received the updated instructions on how to enter the Grantor Letter info into Turbo Tax.  As mentioned above, it's a 21-page PDF file, so I'm unable to attach it here.  If you call & give them your email, they will send that to you immediately.

[DawnC]

How do I claim the Qualified Business Income Deduction as a Schedule K-1 Recipient?    

The Qualified Business Income (QBI) deduction, created by the 2017 Tax Cuts and Jobs Act, allows non-corporate taxpayers to deduct up to 20% of their qualified business income.  Business owners and beneficiaries with income from a partnership, S Corporation, or trust reported on Schedule K-1 are generally eligible for the QBI deduction. TurboTax will automatically make the QBI deduction calculation for you based on your Schedule K-1 entries.   The link above details different types of TurboTax entries.  

[DorothyJ]

Hi Warren,

The updated instructions from Hines for entering the Grantor Letter info into Turbo Tax say to create a Trust K1.  I followed their instructions, which begins by searching for 'sale of business property'.  You input the 'Business Property Gain or Loss' from our letter into a Total Sales Price field, along with dates acquired & sold.  This definitely generates a Form 4797.  But...when I followed all their directions, I ended up with errors from Turbo Tax.  I'm very frustrated at this point!  I think the Partnership K1 track that you suggested & I shared in a post yesterday makes the most sense. 

As to where the UBIA goes after we enter it in the K1, I think it's as has been suggested: in our situations, it ends up being zeroed out.   You know those instructions that say, "If Line 19 is less than <whatever>, enter 0"  Anyway, thank you for your helpful input!  Let's hope we call put this behind us very soon!

Dorothy

[Wherman396]

Dorothy,

I agree about the UBIA data that you mentioned in your last message.  If you look at the K-1( in form view), UBIA is in 2 different places so it is definitely being reported.

I took the K-1 Partnership instructions and provided it to Hines Customer service.  Don't be surprised if you get a message from Hines with those instructions. 

I am pretty much done and going to "let the chips fall where they may".

Best Regards

W

[twatripp]

Can't say it's right or wrong, but looks like a good solution.  Thanks for helping us out.

[ssssweakley]

Thank you very very much for the work and time you put into this!!

[davewatsontt]

Exactly! It's ludicrous.

[angel22865]

This is the most frustrating part of the tax sections needed.  It says to put amounts from certain boxes, I have the Grantor Trust Tax information letter, however I don't see any specifically marked boxes.   Is there a form that shows amounts in certain boxes?  I am thinking that maybe I don't have all the form.

Please let me know if there is any kind of additional form that I need to get the info to put on the k1 form.

Thank you

[rwrosche]

 Most of us battled this last year. If you go back a page to April 27th 2021, DorothyJ posted a pretty good summary of the step by step process. I don't know if anyone knows for sure. I have used it twice now and it has not kicked out. Many have spent weeks last year spinning wheels. It did not seem to effect my tax bill so give it a try.

Good luck!