Sale of rental property at a loss


P

Pico Rico

I, myself, am at a loss.

A trust sells, at a loss, nonresidential real estate that had been rented to
third parties. The trust winds up and is filing its final Trust return and
K1s to beneficiaries.

Is the loss a section 1231 loss that is treated as an ordinary loss to each
of the beneficiaries?
 
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A

Alan

I, myself, am at a loss.

A trust sells, at a loss, nonresidential real estate that had been rented to
third parties. The trust winds up and is filing its final Trust return and
K1s to beneficiaries.

Is the loss a section 1231 loss that is treated as an ordinary loss to each
of the beneficiaries?
Ordinary loss on Line 7 of the 1041. Flows to Box 6 of the K-1s. Flows
to Schedule E Line 33f as the loss is not passive. Flows to Line 17 of
the 1040.
 
P

Pico Rico

Alan said:
Ordinary loss on Line 7 of the 1041. Flows to Box 6 of the K-1s. Flows to
Schedule E Line 33f as the loss is not passive. Flows to Line 17 of the
1040.
Thanks. Would Box 6 of the K1s work too? I already have them done.
 
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