GWG bond company went bankrupt and its bonds transferred to GWG Wind Down Trust. The trust issues Grantor letter for grantor(the bond holders) to report tax return. The letter contains, among others, "passive income(loss) from Business (enter on Form 1040, see the instruction)". Where to enter in Form 1040?
I tried to do the following: In Turbotax, under Business section, Business Income and Expanses, I entered it as a business and enter passive income(loss) amount in General income. The amount is loss, so I entered a negative number(loss), but my federal tax is increased, not decreased! When I entered Other income(interest and other income) as a positive number, my tax is decreased, not increased! How to file correctly?
