Question 26 of 75. The sale of the decedent's personal residence may result in: O A short-term loss. O A loss that is not allocated to principal, therefore not limited to $3,000. A loss caused by the expenses of the sale when these expenses are not deducted on Form 706 as an adminstrative expense. A loss that is deducted on the estate's Form 1041, without any consideration to what the beneficiaries actually do with the property after the decedent's death. (In my last test was wrong please take this note this answer is not corrects Mark for follow up