topic The Grantor Letter or Information Sheet is a transmittal... in After you file

How do I enter information from a Grantor Letter?

elizabeth-armstr — Sat, 01 Jun 2019 00:38:48 GMT

The Grantor Letter or Information Sheet is a transmittal...

IreneS — Sat, 01 Jun 2019 00:38:50 GMT

The Grantor Letter or Information Sheet is a transmittal document, copied to the IRS, showing you as a recipient of various forms of income, and possibly having certain deductible expenses. Enter the information listed in the Grantor Letter in the places where you normally would, had you paid or received these items directly instead of through a trust.

You report each income and expense item as if you had received an equivalent 1099, using the name and EIN of the Trust as the payer. So treat interest as if a 1099-INT, dividends as if a 1099-DIV, Gains and Losses as if a 1099-B, etc.

Some of the more common items and where to add them include the following:

Income Items

Click on Federal Taxes > Wages & Income [In TT Home & Biz: Personal > Personal Income ]

Taxable interest and dividends - Interest and Dividends > Interest on 1099-INT [or Dividends on 1099-DIV]
Ordinary income - Investment Income > Stocks, Mutual Funds, Bonds, Other [or one of the other categories listed]
Capital gains and losses - Investment Income > Stocks, Mutual Funds, Bonds, Other

Deductible expenses

Click on Federal Taxes > Deductions & Credits [In TT Home & Biz: Personal > Deductions & Credits > I'll choose what I work on].
Go to the appropriate section, like Your Home > Property Taxes or Charitable Donations > Donations to Charity in 2015.

Thank you, that is very helpful. You did not address whe...

elizabeth-armstr — Sat, 01 Jun 2019 00:38:52 GMT

Thank you, that is very helpful. You did not address where to enter Passive Income (Loss) from a Grantor letter?? Please advise -

It depends on what the passive income/loss is from. Pass...

IreneS — Sat, 01 Jun 2019 00:38:53 GMT

It depends on what the passive income/loss is from. Passive income generally includes dividends, interest, royalties, rents, annuities, etc.
If you don't know the type of activity that generated the passive income, enter it as interest or dividends.

It is a passive loss from Partnerships. Still enter a lo...

elizabeth-armstr — Sat, 01 Jun 2019 00:38:59 GMT

It is a passive loss from Partnerships. Still enter a loss as interest or divs?

yes

IreneS — Sat, 01 Jun 2019 00:39:01 GMT

yes

I have a capital loss of around 13K from sale of family h...

kbirck — Sat, 01 Jun 2019 00:39:02 GMT

I have a capital loss of around 13K from sale of family home and investments, both in the trust. But when I enter the numbers in the interview part of Turbo Tax it looks right, but the Federal review takes me to a form (Schedule D?) where the numbers are shown in the wrong places. My capital loss shows up as the Gross Proceeds, with the actual sale price (net proceeds on interview) on the line for expenses and commissions, and the cost basis on the next line. Is this a glitch? Can I enter directly into a Schedule D?

My trust's grantor letter says the long-term capital gain...

Anonymous — Sat, 01 Jun 2019 00:39:03 GMT

My trust's grantor letter says the long-term capital gain is from an installment sale. It has a form 6252 attached for the trust. I don't recreate a new 6252 in Turbo Tax for me, do I (with pro-rated values)? That doesn't seem right, but neither did entering it as a 1099-B since that's not what the IRS received from the trust. What do I do?

I would create a 6252 in your return with the information...

IreneS — Sat, 01 Jun 2019 00:39:08 GMT

I would create a 6252 in your return with the information from the Trust, since there is no K-1. Form 6252 reports principal and interest payments on an installment sale not only in the year of the sale, but also payments received in the future.

Re: How do I enter information from a Grantor Letter?

taxesarefun2019 — Wed, 03 Jul 2019 19:09:10 GMT

Hi, is there an answer that's missing from this thread? I'm not seeing the answer to the original question of how to input a Grantor Letter.

Re: How do I enter information from a Grantor Letter?

Anonymous_ — Wed, 03 Jul 2019 19:34:14 GMT

@taxesarefun2019 wrote:
Hi, is there an answer that's missing from this thread? I'm not seeing the answer to the original question of how to input a Grantor Letter.

Yes, the primary answer did not transfer over to this new forum from the old board.

Essentially, you can enter the information from the grantor letter (GIS) as if you received multiple 1099s (e.g. enter interest as if you received a 1099-INT, dividends as if you received a 1099-DIV) or simply use the K-1 entry for a trust in TurboTax as a template.

Re: How do I enter information from a Grantor Letter?

taxesarefun2019 — Wed, 03 Jul 2019 19:51:01 GMT

But the Grantor Letter says to enter the interest income and dividend income on Form 1040 Schedule B. How do I do that?

Re: How do I enter information from a Grantor Letter?

Critter — Wed, 03 Jul 2019 20:16:15 GMT

Ok ... in the program simply enter the interest and dividends and if you are REQUIRED to file a Sch B the program will populate it and that would be correct ... the people who sent the letter do not know if you are required to file a Sch B or not and you cannot force one if it is not needed ... IRS regulations.

Re: The Grantor Letter or Information Sheet is a transmittal...

Deniseveltre — Sat, 24 Apr 2021 19:16:24 GMT

When do [Removed PII] get her check

Re: The Grantor Letter or Information Sheet is a transmittal...

SForrestLO — Mon, 15 Mar 2021 16:20:14 GMT

@Deniseveltre

Turbo Tax will not have a status on your refund. If the IRS website says processing, this means they are working on it.

Please use this link to track your refund from the IRS

Tax Season Refund Frequently Asked Questions

Re: How do I enter information from a Grantor Letter?

YANK46 — Mon, 12 Apr 2021 21:01:21 GMT

I see no best answer to this question. Nor do I get much help from within the software. It always wants me to amend an tax return. My Grantor tax information letter has multiple forms indicated and for the most part I can't find them in the program. I might have to look into other software to do my taxes in the future. They just want me to keep spending more money to upgrade and if i do I have no idea if I will even get the information I need then. Form 4797, Form 8995, Schedule E, Interest Capital Gains. This is a liquidating trust for a REIT.

Re: The Grantor Letter or Information Sheet is a transmittal...

YANK46 — Mon, 12 Apr 2021 21:04:45 GMT

Qualified business income? Section 199a UBIA? Passive Income? No answer?

Re: The Grantor Letter or Information Sheet is a transmittal...

Anonymous_ — Mon, 12 Apr 2021 21:37:11 GMT

@YANK46

For your scenario, you would probably be better off using a desktop version of TurboTax and using Forms Mode (which the online versions do not support).

Re: The Grantor Letter or Information Sheet is a transmittal...

Hiker23 — Thu, 15 Apr 2021 19:26:18 GMT

Hello Yank,

I seem to have the same situation as you. If you find a solution to this I would appreciate if you would share it.

Re: The Grantor Letter or Information Sheet is a transmittal...

NewUser2day — Thu, 15 Apr 2021 15:18:23 GMT

I went into forms mode on the desktop version and the lines that the grantor tax letter says to use are not open for me to type in. Any suggestions?