Trust Grantor Letter

[TP82]

My client received a Grantor Letter from a Liquidation Trust.  It reports interest that it instructs to report on Schedule B and Short term capital loss that it says to report on Form 8949, Part 1.  However, under a subtitle of "Other Income", it reports Settlement Income and Other Income as positive amounts but then two pages of negative amounts for things like Salaries and Wages, Property Taxes, Payroll Taxes, Interest Expense, Legal Fees, etc.  How and where do report all this "Other Income"?  I tried using a 1099-MISC but even though when I add it all together and  I get a negative number, the Other Income reports "0".

[JaMorri · Accepted solution]

You cannot have other income that is less than zero. When receiving grantor letter, you need to enter each line item as if it is income or deductions of the taxpayer.