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If the estate received the proceeds and they were deposited in the estate account (presumably with an account that bears the EIN of the estate), then a Form 1041 for the estate should be filed that includes the sales transaction.

 

If the estate sold the house at a loss, and the property was held for investment purposes or rental use (e.g., a beneficiary did not reside in the house), then the loss could be distributed (passed through) to the beneficiaries on the K-1s generated by preparing Form 1041.

 

See https://www.irs.gov/publications/p559#en_US_2019_publink100099687