Hi Mike9241
I don’t want to be picky but some additional information was addressed to the issue I presented and wanted for you to see. First, I agree with your assessment in that business losses was not the contributing factor of whether I should have included these expenses by the Wind Down Trust but I adhered to your reasoning of investment expenses instead and decided to not pursue this matter further not enter into a K-1. This passage below was taken from an article I read on the WDT and I wanted your view on it, if you don’t mind.
“On April 2, 2024 the Wind Down Trust completed a mailing of Substitute Grantor Letters to interest holders whose interests are held at Computershare. Included in the Substitute Grantor Letters are individual interest holders pro-rate share of the Wind Down Trust’s income and expenses for the fiscal year ended December 31, 2023.”
If this changes your thinking then I need to know because I have already amended #2 return and I’m ready to send it out to the IRS and FTB this week coming and I could add the expenses to a K-1 because it may be applicable for a change here. But if this doesn’t change the perception then I’ll leave it alone with investment expenses. Key here is the notification (not included above) that the WDT is acknowledging that holders, like myself, are beneficiaries of the WDT and that every year we/I will be notified of these expenses annually. Does this change your view that investors could be beneficiaries of the business therefore are allowed to record those losses on a k-1?
