Thank you for clarifying the impact on SE tax. Regarding the 1065 M-1 question - I have followed the instructions for entering the ERC information for amending a 1065. However, unlike amending a 1120S, the ERC credit amount didn't automatically appear as an adjustment on the M-1. I had to manually enter the adjustment. Is there a reason PS isn't treating the ERC adjustment the same? Or am I missing a step somewhere? Thank you.

Thank you. That's helpful. I don't know why my searches don't seem to find what I am looking for. They come up with a lot of unrelated topics. I'll discuss with him that he needs to file an extension, convert S Corp distributions into salary and file a late W-2 and payroll reports. A payroll company should be able to process this for him. Appreciate the help, everyone.

Ok. I discussed the officer salary issue with the TP last year and told him he needed to take a salary. He didn't do it again so I wanted to find a way for him to pay SE tax. Oh well, I guess he lucks out again... Thanks.

Since the 2021 asset entry disposal date was not allowed to be reported in the 2022 tax return, I gathered that I need to manually complete F 4797. I've done that and the trust has a capital gain from the sale of the rental property.  I know that a loss in the trust final year can be allocated to the beneficiaries. However, I'm reading conflicting information on whether a capital gain reported on the trust final year can be allocated to the beneficiaries. Can the capital gain from the trust final year be allocated to the beneficiaries? Thank you.      

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.