I want to preface that I don't usually dabble with 1041s so this is new to me. I have a client who bought out a cottage from his deceased mother's estate (his 9 sibling also had a shar of it that he bought out). I was under the impression that this would trigger K-1s for all the siblings but the software is computing any. Instead, it is having the estate pay taxes on the capital gains. I guess my question is, is this correct? Am I doing something wrong? If the estate is paying the taxes, would the siblings not get a K-1 from any money distributed after the sale?

Any help is appreciated. I typically just stick with 1040s but thought I had a decent understanding of this. So if I'm wrong, I'd like to know where I went wrong.

Thanks y'all