Reporting Rental Income / Deductions on Grantor Information Letter

[bmarty]

I have a Grantor Type Trust with its own EIN, which has rental property with income/expenses/deductions. I bought TurboTax Business so that I could file a 1041 Grantor Type and Grantor Information Letter.

When filling out the Deduction section for the GIS, It limits me to 8 entries, but as I understand it, I'm supposed to report everything as though it was being reported by the Grantor. These deductions on Schedule E would be at minimum the following breakdowns (not to mention the fact there are multiple properties to report):

Advertising

Travel

Cleaning & Maintenance

Commission

Insurance

Professional Fees

Management Fees

Repairs

Supplies

Real Estate Taxes

Other Taxes

Utilities

Should I instead try to combine everything into 2 lines:

Rental Income from All Properties

Total Deductions for All Properties

And then report it more granular on the Grantor's Schedule E? I guess that means I send the Grantor an additional document with the breakdowns and all the properties?

[tagteam · Accepted solution]

You can actually create more than one  Grantor Information Letter simply by starting another return where you would input exactly the same information except input the deductions that did not fit on the first GIS.

Subsequently, you would print only the GIS from that second return with the additional expenses listed.

[bmarty]

I think at that point, I might as well just prepare a GIS outside of TurboTax then? But that would also mean I won't be able to e-File my taxes from TurboTax (which was kind of the whole point of buying the software).

[tagteam]

You could enter Forms Mode and input more than one expense and amount on one line and then the total under Amount. For example:

Repairs-$1000  Supplies-$500  Commission-$1000 Insurance-$1000       (total Under Amount)  $3500

[tagteam]

You can also combine everything (as you mentioned) for the purposes of e-filing and then generate a more granular GIS. Doing so would allow you to e-file and there would be nothing wrong with that procedure.