I recently received a Grantor Letter from a trustee handling a security that we had invested in years ago. The investment went sour, and was placed in a "Wind Down Trust". Basically, it in the process of chapter 11 bankruptcy. This letter states "THE FOLLOWING INCOME DEDUCTIONS AND CREDITS ARE TO BE REPORTED ON THE FEDERAL INCOME TAX RETURN OF THE ABOVE NAMES GRANTOR, IF REQUIRED". The letter states that this is for income tax purposes and is being furnished to the IRS. This letter also states that it does not constitute a distribution from the Trust.
There is no IRS form number on this document. It includes the following line items:
"Other Income" (interest and other income) XX.XX
Attorney and Accountant Fees (see Federal/State instructions) XXX.XX
Administration Cost (Enter on form 1040, Schedule A)
Other General and Administrative Expenses XXX.XX
Realized Loss on Marketable Securities -XX,XXX.XX
Since this is all they provided, I am at a loss as to where to enter all this information. The loss is substantial, so I really need to figure this out. Any detailed help would be greatly appreciated!
