Question 1 On the tax forms you have to put when you acquired the house.
That date would be the date of your dad's passing.
Question 2 is it ok to use the September 2024 appraisal
It's close enough in time that the appraisal should be sufficient. An appraisal on the actual date of death would be better but one within 3 months should be passable.
Question 3 Where do I enter what we paid for commissions and closing costs?
You can add the costs to the basis if the software doesn't allow you to deduct the costs from the sales price. The K1s should reflect the loss on the sale. You can pass that loss through to the beneficiaries on their K1s.
Question 4 any other forms I'm missing beside 1041, 8949, schedule D for 1041 and K1?
Not for the feds but you need to figure out if there are state requirements.
Question 5 Am i right in assuming the stepped up cost basis of 218K
The basis is stepped up to the FMV as of the date of your dad's passing no matter what and because it was never used personally the loss becomes deductible by the beneficiaries on the final return.
