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On an estate's final K-1s, do losses on sale of an estate's business assets ever go on the K-1s of the specific bequest beneficiaries?
Specific bequest business assets had to be sold at a loss to pay estate administrative expenses. There were no residuary assets. Do the losses go on the final K-1s of the specific bequest beneficiaries? Or, just on the final K-1 of the residuary beneficiary who received no distributions? Or, are these excess deductions which are no longer deductible by anyone? Tax regulation citation?
