Get your taxes done using TurboTax

Follow the steps in this link for guidance on where to enter the sale of the inherited house.  

As for the improvements made over the years, you will need to add the allocated portion of those costs to your basis when you enter the details of the sale. Once you have reached the input section using the link above, you will need to add any improvements costs to the box that also includes the fair market value of the property when the previous owner passed away.  

Essentially, the fair market value on the date the decedent passed away becomes your cost basis.  However, since you made improvements that you also paid for, you will need to add those costs in this box to ensure you reflect not only your inherited cost basis but the cost of the capital improvements.