how to carry over unallowed loss on rental property inherited from a trust

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I am the sole beneficiary of a trust that terminated 8/1/2023. At termination, I became owner of a rental property from the trust that had $20,000 in unallowed losses. I plan to use the trust's original CMV for my depreciation calculations, since neither I nor the trust has the money available to pay the capitol gains on a stepped up basis. I am using turbotax premier.  Turbotax seems to calculate the depreciation correctly when I enter the trust's "date placed in service" as my own. The problem I have is I believe I should be able to also claim the $20,000 unallowed loss as a carry over, but Turbotax doesn't allow me to manually add it as a prior year carry over on my 8582. I actually have two questions. 1- How do I enter the $20,000 unallowed loss? 2. Do I or the trust need to let IRS know I choose to continue using the trust's original CMV?

[Anonymous_ · Accepted solution]

In the simplest terms, the (previously suspended) passive losses are added to the basis of the property to be depreciated.