Deductions & credits

You are entering it as a primary residence:  "Delete main home sales." 

You will enter them all in the Investment section. It will be considered "other". You will definitely include the fact of the inheritance on one of them. See the screen shot at the bottom. In the first drop down box, you will find, "inherited".

Please see Irene2805's answer in this LINK for how to enter, depending if you are using desktop or online.