Although the home was held for many years is this short-term capital loss or a long-term capital loss?  LONG

In addition, since all beneficiaries shared equally, I assume each report’s one sixth of the loss.  CORRECT

Where on the tax return is this transaction reported? FROM THE ESTATE'S TAX RETURN FORM 1041  EACH BENE WILL GET A K-1 FORM TO ENTER ON THEIR PERSONAL RETURN.  

Thank you for that helpful response. So, it appears that I need to do the trust’s return form 1041 before the individual beneficiary’s can proceed with their own returns?