Beneficiary tax liability/benefit, K-1 lists dividends as long term loss carryover

[mrhorne]

Situation: My mother passed. 2 beneficiaries, 50/50 split. Estate closed by selling real property (primary residence and minor amount personal belongings).  On paper there was a loss on the residence (sold for less than evaluation), but overall assets greater such that net estate account was positive (after all claims, expenses, fees, etc).

However, on K-1 the ordinary dividends are characterized as long term loss carryover, hence deduction-ability flows to beneficiary.

Confused how that can be, considering positive net account.

[mrhorne]

Followup after reading other related posts:  Does estate have to file final tax return?  Are there conditions that does not have to be done?  Who does it, if needed?