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Level 2
posted Jun 4, 2019 5:27:55 PM

Should I use Sch D to report a grantor trust tax information statement with ordinary business loss, other rental income and section 1231 loss (all passive income)?

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2 Replies
New Member
Jun 4, 2019 5:27:56 PM

Yes, you can use Schedule D for your purposes.

The IRS says you should use Schedule D to:

To figure the overall gain or (loss) from transactions reported on Form 8949. 

To report a gain from Form 6252 or Part I of Form 4797. 

To report a gain or (loss) from Form 4684, 6781, or 8824.

 To report capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14). 

To report a capital loss carryover from the previous tax year to the current tax year. 

To report your share of a gain or (loss) from a partnership, S corporation, estate, or trust. (However, corporations report this type of gain or (loss) on Form 8949.) 

To report certain transactions you don't have to report on Form 8949, such as transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and for which you have no adjustments, as explained under Exception 1, later. Individuals, estates, and trusts also use Schedule D to report undistributed long-term capital gains from Form 2439.

Level 2
Jun 4, 2019 5:27:58 PM

Does each item of income need to be reported separately or can then be reported as a lump sum (income or loss)?