Skip to main content
July 29, 2024
Solved

where to file GWG Wind Down Trust income(loss) etc

  • July 29, 2024
  • 1 reply
  • 0 views

GWG bond company went bankrupt and its bonds transferred to GWG Wind Down Trust. The trust issues Grantor letter for grantor(the bond holders) to report tax return.  The letter contains, among others, "passive income(loss) from Business (enter on Form 1040, see the instruction)". Where to enter in Form 1040?

 

I tried to do the following: In Turbotax, under Business section, Business Income and Expanses, I entered it as a business and enter passive income(loss)  amount in General income. The amount is loss, so I entered  a negative number(loss), but  my federal tax is increased, not decreased! When I entered Other income(interest and other income) as a positive number, my tax is decreased, not increased! How to file correctly?

    Best answer by M-MTax

    Have you tried entering it as if you received a K-1?

    1 reply

    M-MTax
    M-MTaxAnswer
    July 29, 2024

    Have you tried entering it as if you received a K-1?

    shchan888Author
    July 31, 2024

    Yes, I tried different K-1. The one K-1 (Form 1041) seems to work. Thank you.

    Employee
    March 24, 2025

    Can you provide more information on how to do this within turbotax deluxe.  My letter just covers 2024 calendar year and doesn't cover my entire loss.