@sallywing wrote:
TT Business shows a loss in Home Sales under Investment Income, but my accountant says that any loss is not deductible by the Trust/Estate. Why does TT show the loss? What should I have entered when answering TT questions to be sure that the loss doesn't show on the tax return?
Because you sold to a related party, the loss is not deductible.
See https://www.irs.gov/publications/p550#en_US_2018_publink100010464
The instructions relate to Form 8949 and Schedule D. Essentially, you need to somehow get an "L" code into column f and the nondeductible loss adjustment into column g of Form 8949.
See https://www.irs.gov/instructions/i1040sd#idm140545990419792
Obviously, you will need to accomplish the foregoing using Forms Mode; Step-by-Step does not appear to be programmed for related party transactions of this nature. I would suggest that you contact Support (link below) for further instructions regarding how to enter the transaction in Forms Mode.
https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632
