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Robert M.
Robert M., Consultant
Category: Financial Software
Satisfied Customers: 8753
Experience:  30 yrs. of computer experience in financial and marketing departments.
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I got a grantor letter trust and it includes a term capital

Customer Question

i got a grantor letter for a trust and it includes a long term capital gain on it of $566,141 which is all being held in trust as I certainly didn't see it but if I enter it on my tax return, I will have a gigantic liability and I'm trying to determine whether this is informational or something I need to report. There are also Capital gain distributions and some dividend income but they are not so huge, although I also did not receive those amounts.
Submitted: 1 year ago.
Category: Financial Software
Expert:  Robert M. replied 1 year ago.

who is managing the trust for you and what type of trust is it?

A granter trust would normally be if you set up the trust for somebody else but you still retain the right to revoke the trust.

Generally the trust itself would pay the tax on that amount rather than you on your personal taxes as trusts are treated as individuals and file their own tax returns.

But again i would check with whomever is holding the trust.

Customer: replied 1 year ago.
It's a fiduciary trust that I think has it's own return but I got this letter which had instructions about entering the amounts on my tax return and it's a bit confusing. I'll check with them, but one would think these would come with a little more information about what to do.
Expert:  Robert M. replied 1 year ago.

Probably just a standard form. It should have its own tax return. But i would definitely check with the people running it and a cpa if they dont give you the answer you want to hear.

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