How do I retain prior years passive losses after business changes from LLC to corporation (and no more K-1)

[WT4]

For tax year 2019, my ownership in a multi-owner LLC (business, not rental/real estate) generated a K-1, which I used to file federal Form 8582 Passive Activity Loss Limitations. The LLC has now filed Form 8832 Entity Classification Election so it could now be taxed as a corporation. As a result, I will not receive a K-1 for tax year 2020, and I will not receive one in the future.

Given I have prior years passive losses, what do I on my 2020 and future tax returns? When I sell/dispose of my entire interest in the business in the future, I wish to deduct this passive activity loss.

[jtax]

Don't mark the K-1 as "final" in TT, even if the K-1 says final.

This will keep the K-1 in your return for future years, along with the suspended passive losses. Leave it in the return each year but don't enter any income in any of the boxes and don't remove it.

In the year you fully dispose of your interest, mark the K-1 as final (even though you didn't get a K-1) and indicate that you fully sold/disposed of your interest, entering your basis and proceeds. It is marking as fully disposed of that will release ("allow") the suspended passive losses.

However, I would want to verify that the gains/losses from the disposition (not the suspended passive losses) show up in the right place on that year's return and are not double counted. It is possible that the k-1 gain/loss should be zero and the gain/loss on the business is a separate Schedule D/8949 thing. Without working through it in a real return I'm not sure how to deal with that.