@Robtax70
It is unlikely you have a gain to report and more likely there is a loss. The capital gain is the selling price less the sales expenses less the market value on the date of death less any improvements made to the property between the date of death and the date of sale. Frequently, that is a loss.
let's say your share of the sale is $125,000. That is tax free to you. Estates with less than $12 million do not pay estate tax. You receive the money as the beneficiary from the estate tax free.
Who was the seller of the home (look at the closing statement). You or the estate? who is listed on the form 1099S? it makes a difference whether the Estate is responsible for reporting the sale on its tax return (and you would receive a K-1) or the 3 of you are repsonsible for reporting your respective fair share.
