I think I understand a bit more now.
Basically, in order for the estate of a deceased person to be dissolved, the estate has to show the disposition of all assets first. Generally, this is shown on a K-1. In situations I'm familiar with, that portion that the estate has already paid taxes on and then distributed to the beneficiary recipients is reported to the beneficiary recipient on a K-1. That is for the sole purpose of showing the disposition of he asset in the estate dissolution process. The recipient of that K-1 does not report that K-1 on their tax return at all.
Then, for those things that the beneficiary recipient pays taxes on, those are reported separately using other tax reporting documents, which are also sent to the IRS and to the beneficiary recipient. But in your case, I have no clue how you're going to handle this on your tax return, and I question if you can do what's required (whatever that may be) with TurboTax.
