@Carl wrote:
Now most likely you sold it for less than your original asking price. So using that original asking price or the price you actually sold it for would be acceptable as your cost basis.
@Candymancan stated the exact price for which the property was sold ($260,000) and that price would not be acceptable as the basis for the property.
Again, the fair market value on the date of death (plus the cost of any improvements made) would be the basis for purposes of calculating gain on the sale.
