Yes, thank you.  Same problem. This is the first year I am preparing this trust return and it actually is the first year it is creating a loss because the rental property was vacant for more than half of the year.  Does this apply to all Simple Trusts that losses are unallowed and does not flow thru to K-1 and therefore beneficiary? Or should I be looking for the Trust document to see what it recommends? Please say no to the latter question!!