Capital loss on sale of rental property in an estate

[tvbotham]

If we sell a rental property in an estate and there is a capital loss, how do we pass that loss onto the beneficiaries of the estate?
13 months after my dad pissed we sold his rental property. Date of Death value was 5.2M, we sold it for 3.7M. There are 5 beneficiaries with equal shares of the estate. How does the estate transfer the capital loss to the beneficiaries?

[tagteam]

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@tvbotham wrote:

How does the estate transfer the capital loss to the beneficiaries?

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In conjunction with the preparation of the final 1041 for the estate, a K-1 will be generated for each beneficiary.

On each K-1 a figure will appear on Line 11, with a D code, indicating a long-term capital loss. Each beneficiary will enter that figure (the loss) into their individual income tax return.