You would enter the information reported on the Grantor Tax Advice Letter as if it were reported to you on a Form 1041 K-1.
The easiest way to find any section of TurboTax Online, is to open your return, go to Tax Tools in the left column >> Tools >> Topic Search. Type in your topic, click the topic in the list and then GO to go directly to the start of that section. In TurboTax for Desktop, use the Search box or Show Topics.
Use the following steps to enter this information:
- Answer Yes to add a new K-1.
- Choose Start beside Estates or Trusts (Form 1041) and enter your information.
- After you have entered the initial information about the trust, you will get to the section where you can select the boxes to fill in.
- Put a check beside Boxes 1-5. This will allow you a place to enter long-term or short-term capital gains/losses (box 3 and box 4a). The information will be transferred to the appropriate section of your Form 1040.
A lot of grantor letters include expenses which can't be deducted and are purely informational. This includes attorney fees & administrative expenses.
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