topic Grantor Letter from Liquidating Trust in Deductions & credits

Grantor Letter from Liquidating Trust

barussel22 — Mon, 23 Feb 2026 13:18:26 GMT

Where do I enter the "Other Income" and the "Trust Expenses" items from a Grantor Letter. It came from a Liquidating Trust. Other income was a positive number and Trust Expenses was a larger negative number.

Re: Grantor Letter from Liquidating Trust

Anonymous_ — Sun, 05 Feb 2023 18:28:31 GMT

It might be easier to enter the figures on the GIS as if you had received a K-1.

Re: Grantor Letter from Liquidating Trust

barussel22 — Sun, 05 Feb 2023 22:21:09 GMT

how do you do that in Turbotax Deluxe tool? I am not finding it using the help tool.

Re: Grantor Letter from Liquidating Trust

Anonymous_ — Sun, 05 Feb 2023 23:07:31 GMT

If you are using Deluxe online, you need to upgrade to Premier in order to enter a K-1.

Re: Grantor Letter from Liquidating Trust

Mike9241 — Mon, 06 Feb 2023 08:30:46 GMT

if those trust expenses are investment expenses other than investment interest expense they are not deductible for federal purposes. the income would be taxable.

Re: Grantor Letter from Liquidating Trust

barussel22 — Mon, 06 Feb 2023 11:07:53 GMT

This was related to the Dam Failures in Michigan that caused historic flooding. Lawsuit against Dam owner. The trust was created to liquidate Boyce Hydro (dam owner). The income was far less than the expenses which were the legal fees for the class action lawsuit. I received no money. So I don't understand why i have to claim the $144 "Other Income" when the expense was -$546. I am pretty sure this was all done so the Lawyers could get paid for part of their fees.

Re: Grantor Letter from Liquidating Trust

Anonymous_ — Mon, 06 Feb 2023 15:06:34 GMT

See https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/can-i-deduct-legal-fees-on-my-taxes/L98fUeOrM