On the Trust return you would report the gain on sale on form 8949, which would flow to the 1041 Sch D, 8a, if long term gain. On 1041 D line15, you would report the carryover loss, if its long term. If the loss carryover is short term it would go on 1041 D line 6. The gain and the loss would net page 2, Part III under beneficiaries, and carry to Line 4 of the 1041. The net loss would then be split 3 ways and reported on each beneficiary's 1041 K1 statement on line 3 or 4a, depending on the nature of the loss, if it is long term or short term.
