2/14/21
After struggling with this for over a week, and after reading all of the other posters' comments, here is the likely, correct fix: (Gains and losses of business assets are normally listed on Form 4797. The only way I found to get this loss onto Form 4797 is below. Overriding may show the loss on your return, but without a lot of overriding, won't properly show it on Form 4797.)
In step-by-step, go to the page for the specific rental property, i.e., 1234 Maple Street. The upper half of the screen is for income for that rental property, the bottom half for expenses. The very last item on the page is Dispose of Rental Property Assets. Enter Edit.
This will take you to a page listing all of the assets in TT for that specific property. I.e., building, carpet, HVAC and whatever you previously called your amortizable loan fees. Click Edit by your loan fees.
Enter "Sold" on the next screen.
Next screen, enter the date the loan was paid off (sold). Leave the sales price blank or enter Zero. Enter Continue. That should take you to a page that shows your "loss" as a negative number, for the remaining unamortized loan fees. TT does not propagate that loss anywhere unless you take the following steps!
Switch to Forms.
Left hand column, go to the Asset Entry Worksheet for loan fees for that specific property.
On the Asset Entry Worksheet for the loan fees that you want to write-off, go to page 2, under Disposition. About the 4th line down it asks for the Property Type. From the drop down menu, choose Trade or Business. The loss should immediately appear and propagate.
You are done.
This will propagate the loss to Form 4797, which will in turn propagate the loss to 1065, page 4, line 10.
Disclaimer: I observed the apparent proper propagation and have not researched it any farther so YMMV. It's a shame this software costs so much and it's still a Beta version relying on users to find the errors.
