Partners did not dispose off their partnership interest and and did not receive any sale proceeds. All their partnership interest is converted into corporation stock. This disposition is not taxable. Where is the option to check disposition not taxable.
I don't know (yet). They are not allowed in 2019. I think they carry over until the stock is disposed of in a fully taxable transaction (former passive activity rule). If you mark the final K-1 box I am afraid the software would allow them.
I agree with that answer but that stands to reason that the basis in the new stock needs to be adjusted for the losses that are being carried. If I delete the k-1 next year, those losses will be deleted as well. My only thought is to create an excel sheet showing the adjusted basis of the new stock in some sort of perm folder.