GWG Wind Down Trust Grantor Letter

Forum|Forum|1 year ago
March 22, 2025
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I am working on my 2024 Taxes with Turbotax Deluxe. I received from ETC Brokerage Services that includes a GWG Wind Down Trust Grantor Letter. It shows Interest Income of $3.97, Attorney Fees of $73.71, Administrative expenses of $46.15 and at the bottom a Realized Loss on Marketable Securities of -5,625.12. I am really mainly worried about how to enter the loss. I need to know specifically where and how to input this in Turbotax. I also have a second letter for my wife's separate account.

BrittanyS

Capital gains and losses are reported on the Schedule D of the 1040. To enter in TurboTax, follow these steps:

In the search box, type "capital loss carryover." Enter precisely how it is shown here and click find
Click "Jump to capital loss carryover"
Enter information for your loss

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EDW1

I have the same letter from GWG with different amounts and read that the info should be entered on form 1041(K-1) and TurboTax would move it to the correct forms. I am totally confused. I would think the Interest would go on Schedule B and Loss on Schedule D, Expenses on Schedule A. Do I enter it directly on the schedules and skip creating the K-1?

PatriciaV

Employee

You would enter the information reported on the Grantor Tax Advice Letter as if it were reported to you on a Form 1041 K-1.

The easiest way to find any section of TurboTax Online, is to open your return, go to Tax Tools in the left column >> Tools >> Topic Search. Type in your topic, click the topic in the list and then GO to go directly to the start of that section. In TurboTax for Desktop, use the Search box or Show Topics.

Use the following steps to enter this information:

Answer Yes to add a new K-1.
Choose Start beside Estates or Trusts (Form 1041) and enter your information.
After you have entered the initial information about the trust, you will get to the section where you can select the boxes to fill in.
Put a check beside Boxes 1-5. This will allow you a place to enter long-term or short-term capital gains/losses (box 3 and box 4a). The information will be transferred to the appropriate section of your Form 1040.

A lot of grantor letters include expenses which can't be deducted and are purely informational. This includes attorney fees & administrative expenses.

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