Your pre-paid funeral fund is set up as a Grantor Trust, where the grantor and the beneficiary are the same person (you). You receive a Grantor Letter instead of a K-1.
Capital gains are entered on Schedule D. Please follow these steps to enter the information:
- Click on Federal > Wages & Income.
- In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.
- If you have already entered some investment sales, you will see a screen Your investment sales summary. Click on the Add More Sales link.
- If you haven't already entered some investment sales, you will see a screen, Did you sell stocks, mutual funds, bonds, or other investments in 2020? Click the Yes box.
- On the next screen, click the appropriate box and click Continue.
- Continue through the screens, entering the requested information.
As to the fiduciary fees, because of the Tax Cuts and Jobs Acts (TCJA), you can no longer deduct miscellaneous itemized deductions such as fiduciary fees on Schedule A for tax years 2018-2025. You can still enter them in case they are deductible on your state return.
To enter the fiduciary fees in TurboTax please follow these steps:
- While in your return, click Federal Taxes > Deductions > I'll choose what I work on [In TurboTaxOnline: Federal > Deductions & Credits]
- On the Deductions page, scroll down to the Retirement and Investments section and click the Start/Update box next to Other Investment Expenses.
- On the Other Investment Expenses screen, click the blue Yes box.
- On the next screen, Enter Investment Expenses, enter the fiduciary fees.
