DianeW777
Expert Alumni

Deductions & credits

Yes, the loss would be passed through the K1 to the beneficiaries. 

As long as no one used the property for personal purposes as a home or second home and none of the beneficiaries had their name on the deed before death, the loss is allowed on their personal returns.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"