I am now preparing the 2022 1041. The trustee kept the trust open until 12/31/22.

Like your post said, the Sch E and suspended loss carryforward were both transferred from the 2021 tax return to the 2022 tax return.

However, the asset entry and depreciation schedule were not carried forward since I entered 8/20/21 as the disposal date (date the property was no longer rented) with no sale price.

When setting up the asset entry in the 2022 1041, I get an error message when I enter the 8/20/21 disposal date. 

How do I set up the asset entry so that it shows depreciation stopped on 8/20/21 and so it can be used to report the gain from sale of the property? I can't put 1/1/22 as the disposal date because that will report depreciation for one day.

If I'm not supposed to set up the asset entry but manually enter the sale, then how do I do that and make sure the suspended loss gets accounted for? Do I leave Sch E as is since it shows the suspended loss? Or do I delete Sch E, since there was no rental, and manually enter the suspended loss somewhere?

Thank you.