Am preparing Form 1041 for my father-in-law's estate. His daughters sold his house in 2018 and each of them received a 5-digit payout from it in 2019. When I prepare the Form in TurboTax, the K-1s all come back blank with no figures listed in Box 1, 2, or 3. The house was appraised for $430k but sold for 400k. Is the blank K-1 due to the fact that, on paper, the house sale reflected a realized loss of 30k, and thus none of the daughters technically experienced a capital gain (and thus don't owe any tax on it)? How should the payout be reflected on their individual 1040 returns? Thanks much for any help/insight on this.
