How do I enter information from a Grantor Letter?

[rwrosche]

Thank you for your efforts.

I have been fighting this all day.

I think what they gave you is close  and more than I had before

but I never get the forms to populate. I'll wait.

Rob

[Jacker]

So, I sent an email to Hines this morning and spelled out what I (we) have been running into with the Grantor Letter and TurboTax. I mentioned that I was not alone and asked for instructions. I was pleasantly surprised when I got a call from Hines this afternoon. I spoke to a gentleman that offered to walk me through it over the phone . I told him that someone on the forum had already talked to Hines and was given instructions but things still didn't seem right. He said that they had been going through the steps using TurboTax and this is what I needed to do. All the instructions were the same up to Box 3. It was left blank (so the same thing as 0). Box 14 you choose I - Section 199A info then continue. When you get to the screen after you enter the Hines Global REIT info, select Hines Global REIT has business income (loss). It will drop down 4 boxes. Enter the QBI number in the Rental Income (loss) box. Check the UBIA box and enter the number. The rest is the same.

Nothing flagged any errors. The K-1 worksheet looks good.  The negative number that I would have expected to show up on Form 8995 wasn't there, instead a 0. Schedule E nothing but 0's, was expecting to see values input from the Grantor Letter. But no errors flagged. I mentioned that I would have expected to see some values in some of the schedule where there were none. He said that it may be just because of my tax circumstances or no impact in general. Looks like there will be a QBI loss carryover in 2021 shown on the bottom of the K-1 worksheet. Meaning I guess there will be more fun to be had next year. At this point, I am good with it unless someone sees something obviously out of whack. 

[rwrosche]

Thanks Jacker

I am getting the same results you did. I suppose that's possible.

I may wait another day to see if anything else pops up but I am ready 

to file. I have spent too much time with this.

[Wherman396]

Sorry, I am not sure I understand you instructions.

It looks like you left out:

Business Property(4a) , Unrecaptured Section 1250 (4c), and partnership income (?).  

Also when you entered code I, section 199A did you fill in the amount because you used QBI in another entry?

So, if you can be more clear, that would be great.

I played around with turboTax Just using the forms entry and found I was able to Generate a 4797( using it's worksheet), Part 1 column G and Line 11 of worksheet schedule D

We all have spent way too much time on this issue

Thanks much

[Hiker23]

@Jacker,

Thanks for making this effort contacting Hines and letting us know the results.

If you check your federal return you should see form 8582 Passive Activity Loss Limitations.  That is where the amount you were expecting to see on Schedule E would be reported.  I believe that you are not allowed to take the loss on passive activities until the associated activity is disposed of.  I'm thinking that once we get the Final Grantor Trust letter from Hines (hopefully for 2021), that any accumulated losses would be deductible.

[Jacker]

It was your very informative post that I was responding to. You got me going in  My intent was  to address the steps that differed from your post. 

So your steps for box 1, 4a, 4c , 7 remain the same. At Box 14, select the I-Section 199a and hit continue. Proceed with your steps hitting continue until the screen following the Hines Global REIT Properties, LP and EIN which should be entered. Then select Hines Global REIT Properties has business income (loss). You'll get 4 boxes. Put your QBI number in the Rental Income (loss) box. Then select Hines Global REIT Properties, LP has UBIA of qualified properties. Enter UBIA number there. The rest remains the same as your instructions. I hope I got all that in the right order and it addresses your concerns. Let me know if not. I haven't spent this much time in front of my computer screen since I retired. I had fun when I was working but don't miss it a lick. Obviously, my work had nothing to do with taxes.....

[da1963]

Can you share the number where you contacted a knowledgeable person at Hines?  I called Customer Service and that person couldn't help, I sent an e mail and received a voice mail  with a phone number but have called back twice and no response.

I really appreciate all the responses but can anyone summarize the steps in one message?  There are so many its really hard to follow and know with certainty we are following the latest and greatest.

Thanks for all your help.  Feels comforting knowing that others are struggling with this very vague letter from Hines.

[da1963]

Hi ,

Can you help summarize the Turbo tax steps from what the Hines person shared?  or your contact ?

So many e mails and mixed messages and suggestions.  Thank you

[Jacker]

First create a K-1 Estate or Trust ( USE EASY STEP in TurboTax) with the Hines Liqudating Trust name, EIN and address.

( if you don't see information posted you need to hit continue to go to the next screen)

Select: Domestic Beneficiary.

Select: My K-1 uses Calendar Year

Select: Is this a Final K-1. NO

Select Boxes 1-5, 6-9 and 14

Enter: Box 1, Interest from Grantor Letter

Enter: Box 3, 0 or leave blank

Enter: Box 4a Business Property Gain or Loss from Grantor letter

Enter: Box 4c: Unrecaptured Section 1250 Gain from grantor letter

Select: Rental Real Estate

Select: NO - Are you a Real Estate Pro?

Select: NO - Participate in this Activity?

Enter: Box 7 - Partnership Income from Passive Activities from Grantor Letter

At Box 14, select the I-Section 199a and hit continue.

Pass the next 2 screens

Select: Yes - we see you have section 199A income

Next screen enter name and EIN for Hines Global REIT Properties, LP. 

Next screen select Hines Global REIT has business income (loss). It will drop down 4 boxes. 

Enter the QBI number in the Rental Income (loss) box.

Check the UBIA box and enter the UBIA number. Hit continue.

Next screen check None of these apply.

Next screen No.

Next screen Done.

The bulk of this is from Wherman396. I just cut and pasted. Please understand this has been a 'best effort' endeavor. The above steps appear to work.

[Slaglesan]

I've been sawing on this for a week. Glad I found you guys and your posts on this community forum. Very helpful. Thanks!!!

[DorothyJ]

@Jacker Thanks for putting this all in one place!

I took a break from pounding this rock yesterday.  But my last post on Wednesday basically described the change the guy from HInes told you to make.  In that post, I described how I had put the QBI under Regular Income (Loss), but wondered if it should be Rental Income (Loss).  So I'll make that small change & submit in a few days (just in case something comes up).  Like all of you, l've spent WAY too much time on this, esp with no net effect on what I owe or will get back.

[Martyr]

I am not a tax person.  Just someone who received a Grantor Trust Tax Information (from HGR Liquidating Trust) and may be able to add a few more tips to the great advice Irene gave.  Hopefully if someone who is a tax pro realizes I am wrong about something you can jump in and save us all. After a lot of false starts, here is what I did:

• Enter the information as if you received a K-1 from a limited partnership
• Once you fill in the basic info about the trust (acting as if it is a partnership), TT will ask you which boxes have numbers in them.  Select box 5, 9, 10 and 20
• Enter interest income into box 5
• Enter business property gain or loss into box 10
• Enter unrecaptured section 1250 gain into box 9c
• to deal with the misc. and qualified business info, which is pass through income, enter code Z into box 20.  It asks for an amount.  I did not put one in because it was not obvious to me what amount should go in there.  Not saying that was right but it didn't complain.
• You will then fill in the information about the partnership that has passed through to the Liquidating Trust (In my case, Hines Global REIT.  The EIN is on your letter)

Hope this helps.  And to paraphrase that old TV commercial: "I'm not a tax guy. I just play one on TV."

[kwray0355]

Thanks, your answer makes since to a guy that also isn't a tax person!  I'll give it a try.  Appreciate all the work that everyone has done on this.  

[DorothyJ]

@Martyr @Jacker 

So today I deleted the K1s I had entered as trusts (I have 2 accounts to enter) & re-did them as @Martyr suggests above, entering the Trust info as a Partnership K1 & filling in the fields as indicated.  Doing it this way DOES generate the Forms 4797 and 8995 as indicated in the Grantor Letter.

I know this muddies the water again, when we all felt pretty good about the info we had received from Hines about how to enter on Turbo Tax.  I THINK we'd be okay either way, but I'd love to hear some feedback from others.

[tagteam]

@DorothyJ Again, the following statement from @Martyr is key:

Enter the information as if you received a K-1 from a limited partnership