The cost basis of the house would be the fair market value when they took possession of it. If the sales proceeds were less than the cost basis, then there was no gain on the sale of the house and you don't need to report it unless a form 1099-S was issued. If you have a form 1099-S issued then you can report the sale so that it will match what the IRS has but list the cost equal to the sale proceeds if there was a loss.
If there was a gain on the sale of the house, enter it as an investment sale in the Investment Income section of TurboTax, which you will find under Wages and Income. Choose Stocks, cryptocurrency, Mutual Funds Bonds, Other. Choose the Other category and Second Home sale options to report the sale.
Each sister would report their share of the sale proceeds and cost basis. If a form 1099-S is in the name of just one of them, report the proceeds listed on the form and adjust the cost basis to reflect the correct gain belonging to that individual.
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