Reporting RESP income and expenses on 1040

[jayaamit]

I have a RESP in Canada that I hadn't closed before moving to USA. I have filed 3520 and 3520-A. However, I am not sure what to do with the "Foreign Grantor Trust Owner Statement" that I issued to myself. Due to the nature of the account (Knowledge First Financial) I have interests, dividends, capital gains, other income and also expenses that I have noted in 3520-A. My question is how to report these amounts in my 1040 tax return?

Here's what I have figured so far. Please correct me if this is incorrect and please suggest the correct approach:

For all interests mentioned in the 3520-A Grantor Owner Statement I should fill out 1099-INT form in TurboTax as if I received that form.
For all dividends I must fill out 1099-DIV.
For Capital Gains I decided to put them in the 1099-DIV form itself as there was a section for Capital Gains inside 1099-DIV.
For other income I decided to add it as Other income so that it appears in Line 21 of 1040.

I am still not sure how to claim the expenses in the 1040 or any of it's schedules. If I put them as "investment expenses" then they will come under the 2% AGI rule for my whole AGI even though ideally these expenses should be calculated as 2% AGI of the trust income and not my whole income. I am at a loss regarding how to report the expenses properly. Ideally it should have been better if I could put all interest, dividends, other income and expenses together in single form so that the expenses apply against the income, but by splitting the interest and dividends into 1099-INT and to 1099-DIV I am not sure how to claim the expenses properly. So, any help is appreciated.

Here's the definition of the expenses that have been charged by the RESP provider:

Enrolment Sales Charge (makes up around 25% of the income = $500)
Depository Fees (very nominal - $3 or so)
Insurance Premiums (around $20 or so)

Total Income = Interests: $850, Dividends: $320, Capital Gains: $880, Other Income: $15.

In 3520-A owner statement I put all the expenses under `Trust and Advisor Fee` but not sure if I should have put it under Other Expenses. So that`s another thing I need advise on. Thanks in advance.

[jayaamit]

One thing I am confused about is that do I have to attach Schedule E and report the amounts from 3520-A owner statement into Part III of Sch. E (Income or loss from Trusts)? If I do that then does it mean I combine all of interest, dividends, other income as Passive income or as Ordinary Income? If I combine everything like this, and add expenses as deductions in Sch. E part III for this trust, then I don't have to create 1099-DIV, 1099-INT etc, like I did.

How do others who issue a 3520-A owner statement report their income (and expenses) in 1040? Do you file Sch. E or do you split all the income into separate 1099 forms?