The cost basis is the value at the date of death when your family member inherited the property. That basis transferred to you when the property was gifted to you.
Determining the value at the date of death can be done by using the value from the tax rolls at that time or by using comparable property sales from that time. Whatever method you use just be certain to save documentation proving the valuation.
The gain on the sale is determined by entering the sale price that the house was sold for and then subtracting the cost basis you determined along with the expenses of the sale which include all the closing costs that you mentioned as well as any money you spent out of pocket fixing the place up for the sale.
@Golf_girl
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