I'm no expert but it depends on whether the house was sold "in the estate" where you father's name was still on the title at the time it was sold or if the property was transferred to your names and then you sold it.
If the property was sold in the estate there is no loss or gain. The amount it sold for is the value. When you enter it in Turbotax the market value and the net proceeds should be the same resulting in zero gain/loss.
If the property was transferred into your names before it was sold, it should have had an appraised value on the estate closing documents. If your net proceeds (like after realtor fees, etc.) are greater than the appraised value, the profit is taxable.
That's what little I know about it from handling my mother's estate. I'm still waiting to hear if a net loss can be deducted. I don't think it can but Turbotax is letting me enter it and it's showing a loss. I don't think that's right!
