A little issue but it gets real complicated:
Trust owned Land A (no active participation) and Land B (active participation). 2014: Land A Income - $1,000, Land B Income: $1,500 and depreciation passed on to bene of $3,000. My software used the income from A and generated an unallowed loss of $2,000. Was this the correct way to do this? Had this been on a 1040 full depreciation would have been allowed since this TP qualifies for the special $25,000 allowance.
In 2015 Trust was dissolved, no more income and assets transferred to bene for no consideration. There is no plan to file a 2015 trust tax return, other than with zero income and marked as final.
1. Does the transfer from the trust to the bene qualify as disposition and passive loss of $2,000 is allowed?
2. If not, it seems $2,000 is lost forever since this is land, which does not allow prior year losses.
Any ideas are appreciated, I am rather unfamiliar with these issues on a trust level.
Trust owned Land A (no active participation) and Land B (active participation). 2014: Land A Income - $1,000, Land B Income: $1,500 and depreciation passed on to bene of $3,000. My software used the income from A and generated an unallowed loss of $2,000. Was this the correct way to do this? Had this been on a 1040 full depreciation would have been allowed since this TP qualifies for the special $25,000 allowance.
In 2015 Trust was dissolved, no more income and assets transferred to bene for no consideration. There is no plan to file a 2015 trust tax return, other than with zero income and marked as final.
1. Does the transfer from the trust to the bene qualify as disposition and passive loss of $2,000 is allowed?
2. If not, it seems $2,000 is lost forever since this is land, which does not allow prior year losses.
Any ideas are appreciated, I am rather unfamiliar with these issues on a trust level.
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