A passive activity became worthless in 2019. The system is not deducting the prior disallowed losses. How to I get the system to deduct these losses?

[VictoriaD75]

You need to indicate that the passive activity dissolved in 2019, and this will be the last year of reporting. Did you receive Schedule K-1? Was this a passive loss from a rental property? Be certain that the carryover losses from prior years are reported. If you used TurboTax in the past, these losses should carry forward automatically from year-to-year. If not, you will need to indicate the amount of carryover losses from passive activities.

[2chem2]

I received a letter in 2020 that my investment is now worthless.  I had previously received K-1's with tax year 2018 being the last one received.  The letter said no K-1 will be issued for the 2020 tax year.  where do I enter this loss (passive) in Turbo tax.  I originally purchased my interest in the company in 2006.  Do I enter this in the K-1 section or stock loss in 2020?  As I did not and will not receive a K-1 for 2020, the section of TurboTax for K-1's only allows entries if I received a K-1.  Any help is appreciated.

[MaryK4]

Your business interest will be treated the same as worthless stock.  When it becomes totally worthless you have a capital loss.  For the entry, see How do I deduct worthless stock?   

Treat worthless securities as though they were capital assets sold or exchanged on the last day of the tax year.

@2chem2

[2chem2]

Excellent !

That seems logical.