Since the estate went through probate a value should have been found and entered for the home at that time. That value is the estate's 'basis' in the property or it's value at the time of the sale. The only thing that would be taxable is if the price that the house was sold for is more than that basis value.
You'll each have to enter 8.3% of the sale price as well as 8.3% of the basis on your personal tax returns. Then the estate will need to file a tax return with 66% of the sale price and 66% of the basis on it.
If there is no profit - if the sale price minus the basis is zero or less - then there are no taxes due for any of you. If there is a profit then the only amount that is taxable is the profit amount.
@kelkk1969
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