Schedule K-1 from Estate / Net Operating Loss

[Likeaglove]

Question regarding inheriting a Net Operating Loss through Schedule K-1 from Estate.   After settling the estate for her father my wife received a Final 1041/K-1 showing a Net Operating Loss through the sale of rental/commercial property from the Estate.  The property sold for less than the 'market value' at time of her father's passing, which resulted in the NOL.  Working through TurboTax and reading online, it appears that NOL can be taken by my wife (us filing jointly) on our 1040 - resulting in negative income towards our AGI.  It's a significant amount, so I'm concerned about whether this is really correct.

[tagteam]

It is correct if the figure appears on your K-1 (1041) with a E code.