Schedule K-1 (Form 1041) - Grantor Letter Entry Method

The best method for entering information from a grantor letter into the TaxAct® program is through the Schedule K-1 (Form 1041) Beneficiary's Share of Income, Deductions, Credits, etc.. Schedule K-1 (Form 1041), which reports pass-through information to beneficiaries of a trust or an estate, is the most similar to the grantor letter.

To enter or review information from Schedule K-1 (1041):

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand, then click Estate or trust income (Form 1041 Schedule K-1).
  3. Click + Add Estate and Trust Schedule K-1 to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.

Additional Information

Real Estate Investment Trust (REIT) is a form of trust. Entering the information on Schedule K-1 (Form 1041) will result in the information then appearing on Schedule E (Form 1040) Supplemental Income and Loss, Page 2, Part III as is necessary. Using this entry method, passive income from rental real estate would be entered in Box 7, depreciation in Box 9a, and amortization in Box 9c.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.