TaxAmy
Returning Member

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.