I'm trying to see whether I can duplicate the 2023TY 1041 that my CPA prepared for me.
I'm preparing the 1041 for XYZ trust that owns rental properties. There is only 1 beneficiary who will also receive other K1 with positive rental real estate income from ABC trust. The net rental real estate income from XYZ trust is negative because expenses and depreciation exceed rental income.
The Sch K1 that my CPA prepared has a negative rental real estate income ($-17,597) on line 7 ("Net rental real estate income")
I am not able to get TurboTax Business to generate a Sch K1 with negative rental real estate income. The loss stays with the trust; it is not transferred to the beneficiary.
Any thoughts on what I'm doing wrong? If I'm not mistaken, the negative rental real estate income should flow to the beneficiary so that it can offset other positive rental real estate income received from the K1 of ABC trust.
