I'm filing a final (and only) estate return. Decedent's home, which was held in a Living Trust, was sold 2022 with a loss due to selling expenses. No one lived in the property after the death and it was sold quickly. The Trust EIN was listed on the 1099-s and the beneficiaries received the proceeds.
I'm filling out 1041 and put the amount as a negative on line 4. That's the only entry for the estate.
On Schedule D (Form 1041) I entered amounts on lines 9, 18 & 19. My question is Part IV limiting to a $3000 loss. How to address this since it's a Final estate tax return and I need to to pass the entire loss to the 4 beneficiaries.
I did a K-1 (Form 1041) and entered on line 11, with a code D, the capital loss amount for each beneficiary (listed as a positive number since it's a deduction, is that correct?).
I'm using TT Deluxe, and I've since learned the Business program is needed. Is there a way to do this manually on the individual forms instead, and how do I enter the info on Schedule D (Form 1041) to show a greater than $3000 loss per beneficiary?
Do I as executor do the 8949, or do the beneficiaries? And would Part II "description of property" be "Inherited Real Estate"? Anything else need to be done to show the loss?
Thanks much.
