I'm preparing a 1041 for a trust that has rental property that hasn't been rented since August 2021. The property was sold in March 2022.

I know that I can enter the August 2021 date as the disposition date on the Asset Entry Worksheet and not include a sales price. However, the instructions say that the asset won't transfer to 2022.

If the asset doesn't transfer to 2022 then how will PS report the sale of the property on the 2022 tax return? Also, there are suspended losses on the property.

How will the sale and the suspended losses be handled when preparing the 2022 1041 in PS?

Thank you.