Ok. In order-
You have no state filing requirement. You will file a federal 1041 and use the address of the state where the trust was established. That is what @DianeW777 was referencing.
As @DianeW777 told you, the estate and trust filing deadline is April 15th. Here is the IRS page on that.
It is too late to change the tax year. The property was sold in 2021. You have to do the return for 2021.
The income that you received was $630,000 which is considerably more than the $600 thresh hold. You and I know it is a loss. The IRS does not know. The tax return is how you tell them.
You can deduct any reasonable expenses in determining what is a loss. You are the executor. It is your job to determine what is a reasonable expense within the IRS guidelines.
That is the way that you will calculate the percentage allocated to each beneficiary.
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