Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Oct 6, 2024 11:38:34 AM

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

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

0 11 11748
11 Replies
Level 15
Oct 6, 2024 12:03:40 PM

Level 15
Oct 6, 2024 12:05:33 PM

Returning Member
Oct 6, 2024 12:57:49 PM

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.

Level 15
Oct 6, 2024 1:05:30 PM

Level 15
Oct 6, 2024 1:07:19 PM

Level 15
Oct 6, 2024 3:59:03 PM

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

 

Returning Member
Oct 6, 2024 6:13:18 PM

 

Returning Member
Oct 6, 2024 6:16:53 PM

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?

Level 15
Oct 6, 2024 7:02:41 PM

Returning Member
Oct 6, 2024 7:11:08 PM

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

Level 15
Oct 6, 2024 7:20:42 PM