How do you take a loss in the last year of a schedule E?
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NO. They only get to use it against other passive income or when they dispose of the house.
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Did the property sell and you are trying to free up suspsended losses? if so check the box for complete disposition on the schedule E Worksheet
No, they reverted it to personal use for this year. Eventually they will rent it again, but they don't know when.
Then they can't take the loss this year. It remains as a passive loss carryover.
Would they be able to take it if it was the last year they were renting the house?
It is now known as a former passive activity.
Can it be carried forward as a disallowed loss so they can use it if they sell the house?
Yes
That's on the 8582?
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