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See https://www.irs.gov/publications/p559#en_US_2021_publink100099689

 

You should most likely be filing a 1041 if the property were sold in the name of the estate. 

 

If a beneficiary (or other individual) did not use the house for personal purposes, then there is the potential for a loss to be recognized (which can be passed through to the beneficiaries) if the basis was greater than the sales price.

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