Preparing trust return with sale of rental property at a loss which causes negative income. K-1s are blank but the program has allocated the depreciation to the beneficiaries but it does not show on their K-1s and the carryover loss is reduced by this depreciation! There is obviously something wrong. Is it okay to override the allocation of the depreciation to the beneficiaries and allocate it to the trust or do I need to manually enter the depreciation on the K-1s even though there is no income in the boxes above? The program is also showing accounting income without the depreciation deduction. Should I also override the accounting income? Also I need to edit Schedule E to show the depreciation on the property's Schedule E which was left off because the program allocated it to the beneficiaries. I did try doing this and it fixed the carryover loss problem but did nothing else.
