I sold my Mom's residence (the only thing to go through probate). The sale resulted in a loss of 8900 and proceeds of 61000 neither appears on the K-1s. Why?

[twb21]

I file the 1041 but may have to file an amended return because the loss of the sale of the residence does know appear on line 11 of the K-1s.  The proceeds for the sale also does not appear on the K-1s even though the 1041 identifies the proceeds as a amount to be distributed on line 13 Schedule B.  I understand that the beneficiaries can take the long term capital loss. Please let me know what is correct and how to fix it

[Anonymous_ · Accepted solution]

" I understand that the beneficiaries can take the long term capital loss."

They certainly can do so, but only after the final return is filed for the estate (since only at that time will the losses flow through to the beneficiaries on their K-1s). Note that distributions in excess of DNI (i.e., your entire sales proceeds) will not appear on your K-1s since those forms only report items of income, gain, deductions, and credits; distributions of principal (trust corpus) is not reported on K-1s.

Refer to the thread below with respect to making distributions in the program so they flow through to the K-1s properly.

https://ttlc.intuit.com/questions/3206079-capital-loss-carryover-on-final-trust-return-1041