Client receive this in late March after 1040 return was finished. We received nothing apparently from this entity for the last several years. The grantor letter from the trust has several items including about $20,000 in long-term capital loss allocated to the client. Has anyone else seen this? Like I said they apparently received nothing from this entity since at least 2018 and now this came apparently out of the blue. It looks like I have to file a corrected 1040 2022 return and pick up the capital loss and other items on this grantor letter. Thanks for any information.
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Grantor trusts generate grantor letters, not K-1s. You don't say what the other items are on the grantor letter but it could be there wasn't much activity in the past so it was pretty much lying dormant until this year -------------------- or someone had some grantor letters in the past that they forgot to tell you about 😁
Grantor trusts generate grantor letters, not K-1s. You don't say what the other items are on the grantor letter but it could be there wasn't much activity in the past so it was pretty much lying dormant until this year -------------------- or someone had some grantor letters in the past that they forgot to tell you about 😁
Thanks Iron Man. The other items were $16 in interest income and about $500 in other income which they say to allocate to schedule e and $500 approximately in legal and professional fees also allocated per their letter to schedule e. Client said this investment did not pan out to be what they thought, I.E. lost money. I think you may be right things may have been dormant until they apparently closed shop 2022 year and apparently went under due to losses.
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