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Estate's 1041: The estate sold inherited real estate (primary home) for a loss. Do beneficiary's K-1s reflect the distribution of the sale proceeds?


- Using TurboTax Business 2018 for the estate's 1041. 

- The estate sold the inherited primary home real estate for a loss.. i.e. there is no income for the estate to report on the sale.


- Would the K-1s for each beneficiary need to reflect the distribution of the cash proceeds from the sale of the inherited real estate? 


- The purpose of the K-1s is to record income that the beneficiaries should include on their tax filings. The purpose is not to record all money transfers from the estate's bank account to the beneficiaries.

- The beneficiaries also do not owe income tax on the estate's sale of the inherited property which resulted in a loss