This will be entered in the 'Wages and Income' section under 'Investment Income' and then 'Stocks, Bonds or Other.'
Inherited property is treated as an investment that you made. You're going to enter the amount you sold the house for directly from your 1099-S.
Then you're going to need to enter the date that you acquired the house and what you paid for it (also known as your basis). In this case the date that you acquired it is the date of your father's death. What you paid for it is what the house was worth on the day your father died PLUS any costs you had in order to sell it - costs for fixing the house up for sale, costs that you paid at closing that were deducted from that amount on the 1099-S.
If you made a profit on the sale of the house - which can happen, especially if your father died a while ago and you've held the house for a while - then you will pay tax on that profit. If you lost money on the sale - which is more common since most people sell the homes they inherit not too long after they are inherited - then you will get to deduct at least part of the loss on your tax return this year.
Here are more detailed steps to enter the home sale.
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