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passive losses being suspended in year of disposition
Filing a 1041 for a trust for a decedent. The trust disposed of a passive activity in 2023 at a loss, also had operating losses for 2023 and c/o losses from prior years. Checked the box that the K-1 was final. TT is not allowing the losses. The activity was disposed of, but TT is still suspending the losses. Support couldn't help. Passive losses should offset non-passive income in the year of disposal. This is also the termination year of the trust. TT doesn't allow the losses, or pass them out to the beneficiaries.
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‎February 10, 2024
2:42 PM