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The assets in a grantor trust are owned by the grantor. Therefore any income or deductions realized in the trust are treated as realized by the grantor on their individual tax return. If the grantor letter references a form or line, the grantor needs to include that form on their personal tax return. Line 3 of the Sch E is for rents received. Normally, if a grantor trust contains rental real estate, there is a supplemental schedule listing the rental activity income and expense. I might suggest contacting the who prepared the grantor trust tax return for a supplemental schedule of the rental income or expense. If this is coming from a limited partnership K1, you will need that K1 to report on your personal tax return.
I have a Trust Grantor Statement which includes the value of the trust as of January 1 2020, the 2020 equity adjustment, the 2020 ordinary income, the ordinary income true up which is a loss and the cash distribution which was zero. Where do I report each of these values since they didn’t send me a schedule k1? Do I report the total final value of the trust as ordinary income?
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