who was on the title on the date your husband died? if just him, the property would get a step-up in basis to FMV on the date of death.
if both of you 50% would get a step-up to FMV and your 50% would be 1/2 the tax basis. if you lived in it any 2 out of 5 years before the sale your portion would qualify for the home sale exclusion. there is a special rule for surviving spouses. as such, you are entitled to a $500,000 exclusion on any taxable gain since the home was sold within 2 years of his death.
