@oggiejax wrote:
This loss was not incurred by the grantor.
This loss has accumulated by repairs made to the property after basis was established and the assessor's office was notified of ownership change to the inherited party.
That would be entirely different. In that event, passive losses in the trust could be used to offset passive income.
Upon a sale of the property (to an unrelated third party in a taxable transaction), the suspended passive losses are released.
