@Nicmonkeye wrote:
Someone told me the loss from the sale of the house can be passed on to each of the beneficiaries. In which instance would this occur?
The loss can be passed through to the beneficiaries (on the final return) if the house was being held for investment purposes.
You already stated that a beneficiary was living in the house (or staying there) which would mean the house was being used for personal purposes. If that was the case, then any loss would be a loss on property held for personal use and could not be deducted (passed through to the beneficiaries).
