There is nothing to report on your personal return if the estate did not distribute the gain or loss to the beneficiaries of the estate.
You can take a loss as a deduction on an inherited house, the estate would need to distribute this loss to the beneficiaries for the amount to show on the K-1. You can retain the items and deductions in the estate and pay any tax due at the estate level or you can distribute the income and deductions to the beneficiaries.
If you switch to the forms mode (in the upper right hand corner) and look at the list of forms on the left, click on Dist Inc K-1. On this form you can add the information to distribute the loss on the sale of the house to the beneficiaries.
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