Question

Grantor Letter from Liquidating Trust

Forum|Forum|3 years ago
February 5, 2023
2 replies
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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.

A

Anonymous_

Employee

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

B

barussel22Author

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

A

Anonymous_

Employee

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

M

Mike9241

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

B

barussel22Author

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.