Who files what, sale of decedents home

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My mother died Dec. 3, 2020 (at the ripe old age of 101). As executor of her estate, I filed her 2020 Form 1040.  I also obtained a Tax ID # for the estate. I obtained an appraisal of her home as of the date of death. The home was subsequently sold in May of 2021 for slightly less than the appraised value.  The estate has received a 1099-S.   Does the estate file a 1040 for Tax Year 2021?  I know the 1099-S is reported to the IRS, but does the estate file or do the heirs file this information on their individual returns, even though it's a loss?  I attempted to file for the estate using TurboTax, and it recognized the 2020 1040 and pre-filled the date of death.  It would not accept a 2020 date of death for a 2021 filing.

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You need a separate product, TurboTax Business, to file an income tax return for an estate (Form 1041).

See https://turbotax.intuit.com/small-business-taxes

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Since the house was sold in 2021, with a 1099-S issued to the estate, the estate would file a 1041 for the 2021 tax year (either calendar or fiscal).

See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285977

If this will be the initial and final return, and the sale resulted in a loss, then you can pass that loss through to the beneficiaries on their K-1s.

If you have no experience with pass-through entities or filing for one, you might want to seek professional guidance (although this should be a relatively simple return).