---

@PeteY48 wrote:

Yes it does show up in the 8582. In Part V Column b it shows as a positive number.

However when the number is transferred to Part I line 2b it shows as a negative number.

The statement at line 3 says only positive numbers can be a loss. I'm confused.

---

It looks like you have a Passive Loss.  Passive losses can only be used against Passive Income, unless an exception applies.  So it seems correct, unless you think one of the exceptions apply.  Do you think an exception applies, and if so, what exception?

Line 2b?  So there is NOT "Active Participation"?

I'm not sure what statement or line 3 you are referring to.

EDIT:  Oh, I see now you said Simple Trust on a 1041.    Hmmm, I would need to think if that changes anything.