How do I enter information from a Grantor Letter?

[davewatsontt]

Thank you. Will take a look!

[davewatsontt]

Hi, see post directly below yours. Also, this one by GarryR: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-reit-became-a-liquida[product...

[Martyr]

Like Chuckee... It's back!  The key to the HGR Grantor Tust Tax Info Letter is to treat it like (and enter it as) a Limited Partnership K-1.  The info in the Info Letter "enter on" column this year is much cleaner than last year.

• Interest income on other than US Obligations --> line 5
• L/T Gain or Loss: Business Property Gain or Loss -> 9A (sale of business property)
• L/T Gain or Loss: Unrecaptured Sec 1250 Gain -> 9C (I show none this year, but we used this last year)

The rest is pass-through income (if that is relevant) and with one exception, goes on the form that the letter has in the "enter on" column

• Sec 199A QBI is "ordinary business income"
• Section 199A UBIA "has UBIA of Qualified Property" goes in Box 20, code Z

I hope this helps.  I will leave you with two pearls of wisdom:

• Take good notes... HGR still has one property left to dispose of, so you will be doing this again next year
• To paraphrase that old pain reliever add on TV... I'm not a tax expert, I just play one on this message board.

Enjoy!

[Wherman396]

Thanks to all who have posted information.

This year Hines has actually provided detailed info for entering the Grantor Letter into Turbo tax.

Search for HinesSecurities.com

The instructions contain a link: View 2021 Tax Info

Select the link: these guide­lines to answer­ing ques­tions posed by Tur­b­o­Tax

It provides an example of a grantor letter and the fields needed to be entered in Turbotax.

I used these instructions and am going with the results.

Tks

W

[davewatsontt]

Perfect! Saves a phone call, thank you!

[davewatsontt]

Worked like a charm, thanks!!

[Wherman396]

Hi Dorothy,

So, this is the third year we have received the Grantor letter.  I vaguely remember what I did last year.  I created multiple k-1's for the information, however, none of the values end up in the forms HGR mentions in their letter. In addition there is one additional amount that I don't know how to enter ( Gain on transfer of partnership interest).  

I was wondering if you have had a chance to work on you return and if you have had success that you would like to share.

Thanks

W

[Martyr]

Wherman396 - What you are describing does not sound correct.  I have not received my grantor letter yet this year, but here are the notes I wrote up last year:

The key to the HGR Grantor Tust Tax Info Letter is to treat it like (and enter it as) a Limited Partnership K-1.  The info in the Info Letter "enter on" column is much cleaner than the first year.

• Interest income on other than US Obligations --> line 5
• L/T Gain or Loss: Business Property Gain or Loss -> 9A (sale of business property)
• L/T Gain or Loss: Unrecaptured Sec 1250 Gain -> 9C (I show none this year, but we used this last year)

The rest is pass-through income (if that is relevant) and with one exception, goes on the form that the letter has in the "enter on" column

• Sec 199A QBI is "ordinary business income"
• Section 199A UBIA "has UBIA of Qualified Property" goes in Box 20, code Z

Here is a picture of the notes I made on last year's letter:

[rwrosche]

Martyr,

The only change I see from your excellent instruction last year is a new line on this years Grantor Letter.

Under Long Term Gain or Loss 

Gain on Transfer of Partnership Interest. Instruction says Schedule D, Form 1040, Part II , line 10, Column D.

I was not sure what to do with that. I tried to manually enter it there but it would not take it.

Rob

[GeorgeM777]

For 2022, Hines Securities, formerly known as Hines Global REIT, Inc, prepared a step-by-step guide for investors to use when entering information into TurboTax.  Below is a link to that step-by-step guide.  While it is 50 pages in length, if you have no other foreign investments, other than the Grantor Letter, then you can stop at page 34.  Additionally, the guide contains many screenshots with explanatory notes detailing where information should be entered.  You may find this information helpful when preparing your 2022 tax return. 

Also below is a link to the webpage for Hines Securities, Inc. which provides additional information about the Grantor Letter for 2022.  

Information Guidelines for Users of TurboTax Software Regarding HGR Liquidating Trust Grantor Letter...

Tax Information for HGR Liquidating Trust 2022

@Wherman396 

[Jacker]

Frustrating in that the latest Grantor Letter (and final!) from Hines says to select form 1041 Estates and Trusts for the K-1 entries. Seems like the community guidance is to use the Partnerships/LLC form. It doesn't seem to track with that one at all. I'm using the standalone TurboTax Premier. When I run the Smart Check, I get the following regarding Section 199A information. Box 14 Code I has been selected but no Section 199A income has been entered on Statement A. I have entered the Section 199A QBI in the field for Code I. Don't know what is going wrong, Anyone?

[Wherman396]

Hi Jacker,

I get the same message and Statement A is an impossible fort to complete.  Additionally, I get an error in Smart Check for: the form 4797, Part 1,Column G Line 2, saying the number needs to be Positive or zero.

I would love to get this off my plate, anyone have a solution?

Tks

W

[Jacker]

Thanks for the reply. Misery loves company...... 

[Wherman396]

Hi Jacker,

Don't know if this is right or wrong, but here is what I did to clear the 2 errors:

K-1 - changed the code I to Z - Other Information and entered the amount (-346).  Below is an explanation for code Z, which I entered  "Section 199A Information" and the same amount from above,  That cleared the error.

Form 4797 P1 - Column d entered 0, column F entered 2192 that resulted in column calculating to -2192, which is the exact number it was supposed to be per the instructions.  That cleared the error for that form.

I am going to sit on the return for a couple of weeks to see if there is a better answer, but for now I am done.

Good luck

W

[Jacker]

Thank you. Cleared the errors. I too will wait and see if any other options surface.