During year 2, the trust had k-1 with passive activity losses and 1099s with capital losses.Now the election period has ended. What happens to the passive activity losses and capital losses that occurred in the trust? I am filing the 1041 for the Trust for the first year after termination of election, Do i show the losses in the Trust 1041? Can I show capital loss carryovers for the Trust in first year of Form 1041?
Thank you,
JGcpa