Yes, you are responsible for reporting your share of the sale at 25%. The basis of the property is its Fair Market Valuation(FMV) at the time of your mother's death. The capital gain on the sale is the difference between the selling price and the Fair Market Valuation (FMV).
All amounts reported on your return are reported in USD. This means you would enter the USD conversion rate as it existed on the date of the sale. Use this historical rate conversion converter to determine the conversion rate that existed at the time of your mother's death.
Since you are using FMV at the date of your mother's death, you would not use the cost basis at the time the house was bought. This information is irrelevant.
According to this, Michigan specifically states that the gains/losses from the sale of real property are taxable in the state in which the property is located. In your case your property is out of state so this gain would not be taxable on your MI return.
@Engineer101
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