I am having the same issue.  The losses stay in the trust until income uses them up or until the property is sold.  However the K1's have no entries because of this unless I allocate the depreciation to the two K1 holders so it isnt retained in the trust.  This is the only question I have.  Can the K1's have depreciation deductions even though the losses can not be on the K1's until the property is sold?