Where to enter Grantor Letter Info. from a trust handling a investment we made which turned out to be a ponzi scheme..

[timitty2]

The Grantor letter has this info in it: Interest income Passive income loss qualified bus income deduction section 199A IRC section - section 163(J)(3) share of trust gross receipt

[tagteam]

I am going to page another Champ, @Mike9241, to see if he has any input.

[tagteam]

You might want to consider making this entry as if you received a K-1. 

I am not sure how else you could make this entry in TurboTax.

[timitty2]

thank you but do you know about all the other info they sent me and how i enter it? I thought TT Premier would of handle anything, I'm surprised they don't have a special place for this type of form/letter.

[tagteam]

There are a number of users who enter information from grantor letters using the TurboTax K-1 entry interview section for trusts and estates (1041).

The K-1 entry screens prompt you for all of the information that would appear on a grantor letter.

[tagteam]

[Mike9241]

i 'm not understanding your situation. you talk about a PONZI loss which you take a deduction of form 4684 and for which you probably should consult a pro. then you talk about IRC 163(j) which is a limitation on business interest without clarifying whether this is in relation to the PONZI scheme. Then there's the 199A issue. There would be no 199A loss if this is from a PONZI scheme. 

We can't see the grantor trust letter and I don't understand everything that took place within the trust.

however, a grantor trust is a disregarded entity, so in short, the information would be entered as if there was no trust

for example, interest income would be entered for each payee on a form 1099-int

security sales would be entered through form 8949/schedule D

the PONZI scheme loss would be reported on form 4684 there are multiple options

[timitty2]

[timitty2]

I attached the info from the grantor letter that I'm trying to add to turbotax. Please discard what i said about ponzi, that was taken care of. Can you help me?

[tagteam]

@timitty2 

If you enter that as if you received a K-1 (1041) it will work.

Enter the figure on Line 14 with an I code. Go through the K-1 section in the TurboTax interview.

[timitty2]

Someone else already mentioned hat I code for 199A. Do you or someone else have any idea about that wages figure??? 

[tagteam]

---

@timitty2 wrote:

Someone else already mentioned hat I code for 199A. Do you or someone else have any idea about that wages figure??? 

---

Yes. If you go through the K-1 (1041) section in TurboTax and enter your figures on Line 14 with an I code, you will eventually come to a screen that looks like the screenshot below. Enter your figures in the appropriate boxes.