I asked for help, not for insults.  I appreciated all of the good tax preparers for their help.

  I did enter it as a loss. ( selling price as the cost/value and a loss of the attorney/closing costs and real estate fees)    Though even though the 1099R is being taxed on the 1041 it also carried it over onto each of the FAMILY members K'1s by 25% each.. so in one sense it IS being accounted for and taxed twice.. once on the 1041 and on the 25% on each k1.

I am sorry you don't think I am competent.  I was asking for help since I didn't understand this. I was being honest and wanting to do it right and figured we are all there to help each other out in situations like this.  It takes alot to ask for help..  You see I am just a sole tax preparer and usually only don't have too many complex returns with outstanding situations.  I know they did this wrong from the beginning...But they were in Indiana, not home in NYS... and didn't contact me and were not advised by the attorney that ripped them off for 10,000. ( I say that because he should have advised the executress that she was entitled to take a fee, keep track of expenses to handle the estate  etc...so she lost out on that... so I could also call him incompetent, but I won't.   I am not crewl like that.   I do alot of senior's taxes for NO CHARGE, since they can't afford it living on social security.  I also do final returns when some one dies and don't charge the family.  I guess I am not a good business person.. but been doing this since 1981  so I am quite sure I must be a little competent with over 670 clients..that return each year.  I also have helped 2 get divorices and have taken numerous clients to Sloan Kettering Cancer Center for treatments... I guess you would call me a personal service Tax Lady that's phone rings all year long.. THANK YOU to all that have and can help me... I sincerely do appreciate all your educated advice!