Following Turbotax step-by-step for from 1041 under "Distributions" we are asked to enter the the "amount distributed to each beneficiary ". Researching a previously answered question about this in this forum*, this should be the amount of INCOME distributed to each beneficiary and not the total distributed to each from the estate. (Please correct me if I am wrong on that) You are correct.
If this is correct, I am not sure what to enter here since the estate has a negative total income (line 9, form 1041, "Total Income") as the capital losses exceeded the income. Unless the estate is filing it's final return the loss is usually not passed onto the beneficiaries. If it is then a negative amount for the cap losses is possible.
